Silvia Georgieva, executive director of the National Association of Municipalities in Bulgaria, has indicated that for 2026, a widespread update of local taxes and fees across the country’s municipalities is unlikely. She noted that 40 to 50 municipalities have already revised their local charges this year.

Speaking to the Bulgarian National Radio, Georgieva reminded that local taxes and fees can be adjusted only once per calendar year. Any municipality planning changes for 2026 would need to implement them during October or November, following a one-month public consultation with local residents.

Georgieva highlighted that municipal budgets primarily rely on state subsidies and revenue from local taxes and fees, with state contributions accounting for roughly 80% of total funding. This, she explained, makes Bulgaria one of the most centralized countries in the EU regarding local finances.

“Where we see accumulated surpluses, it is because municipalities face restrictions on how to use state funds. Mid-year balances are normal, as not all state-provided resources have been spent yet; many projects are still undergoing procurement. By year-end, these funds will be regularly utilized,” Georgieva said.

She also emphasized that state transfers are not delayed. However, payments under the National Investment Program (NIP) are proceeding more slowly due to the sheer volume of requests. “Municipalities submit thousands of payment applications to central administrations, so delays occur in some areas,” she explained.

Currently, municipalities are awaiting clarification on the procedures for funds financed by the Bulgarian Development Bank (BDB). Documents outlining this process have not yet been published, according to Georgieva. Under the NIP, a total of 1.65 billion leva is expected to be disbursed this year, with 750 million from the state budget and 900 million from the BDB. Payments from the state are ongoing, and once those funds are depleted, instructions for BDB payments will be provided to municipalities.

Georgieva noted that municipalities manage a wide range of infrastructure projects. Any modifications to the NIP can only occur through adjustments to the State Budget Act, which cannot happen until January 1, 2026. Municipalities are therefore encouraged to prioritize critical water supply projects for inclusion in the upcoming budget.

The National Municipal Assembly participates in the Water Crisis Board, which Georgieva says is crucial for coordination. “We hope this structure will operate actively and consistently. Mayors are directly accountable to citizens and work tirelessly to implement necessary water and sanitation investments in partnership with the state,” she added.

She further highlighted the significant role of European funds, totaling over 1 billion leva (500 million euros), which are invested in water and sanitation infrastructure through state operators. Municipalities receive additional funding for their own projects through the NIP.

Georgieva stressed that municipalities are diligently fulfilling their responsibilities. “Every mayor is working daily to ensure citizens have access to clean drinking water and a good quality of life. The tasks facing local authorities are carried out responsibly within available resources,” she concluded.

Source: BNR interview