Bulgaria’s Ministry of Finance has published the draft state budget in euros for 2026. The country’s GDP is projected to reach EUR 120.1 billion, with an economic growth rate of 2.7%. Planned revenues amount to EUR 51.436 billion, or 42.8% of GDP. Expenditures are set at EUR 53.885 billion, compared to EUR 48 billion in 2025. The maximum amount of new government debt that may be incurred in 2026 is EUR 10.4 billion, including a loan of up to EUR 3.261 billion for rearmament under EU programs. Public debt is expected to reach 31.3% of GDP.

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The budget deficit will be 3%, or EUR 3.6 billion. The fiscal reserve at the end of 2026 should be at least EUR 2.4 billion. Inflation is projected at 3.5%. The draft foresees an increase in the dividend tax rate from 5% to 10%. Pension contributions will also rise by 2 percentage points. Funding for social policies will be maintained or slightly increased, while public sector wages may rise by up to 5%.

Published and translated by Kostadin Atanasov

Photo: BTA