GERB leader Boyko Borissov has set a “red line” of a 3% deficit for Bulgaria’s 2026 budget, though he acknowledged there is a possibility it could be exceeded. Speaking to journalists at parliament, Borissov emphasized that additional revenues could help cover any potential gaps, noting that revenue agencies collected nearly BGN 7 billion (EUR 3,5 billion) more this year than last. He credited the increased collections to the fight against corruption, smuggling, and customs fraud and expressed confidence that continuing this pace could help balance the budget next year.

Borissov described the 2026 budget as a continuation of previous assembly budgets, maintaining policies on salaries and pensions. He stressed that no party can now claim to have raised pensions significantly only to reduce them later, highlighting that an additional BGN 1 billion has been allocated to pensioners to maintain continuity and political optics. He also commented on ongoing decisions regarding social security contributions, without providing a definitive answer on potential increases.

The GERB leader criticized former finance minister Asen Vassilev and his team from opposition party “We Continue Change-Democratic Bulgaria” for previous budget decisions, framing the 2026 plan as an extension of policies set under Vassilev’s tenure. Borissov argued that borrowing would continue to avoid public perception that GERB was cutting funds, particularly for pensions, the military, and social programs.

He also addressed the size of the administration and public sector salaries, responding with irony to questions about cuts. While claiming that revenue collection gains would cover gaps, he defended the ongoing fiscal strategy and indicated that additional borrowing was necessary. According to opposition economists, the budget represents a left-leaning approach, including tax increases such as higher pension contributions and the “dividend” tax, with minimal measures to reduce public spending. They criticized these moves as potentially undermining investment and proposed alternatives including a phased zero tax on reinvested profits, limits on public sector bonuses, and requiring civil servants to pay their own insurance.

Bulgaria’s total public debt stood at BGN 42.3 billion at the end of 2023, or 22.9% of GDP, decreasing slightly to 22.6% by early 2024. Borissov’s statements highlighted the political and fiscal tensions surrounding the preparation of the 2026 budget, with debates ongoing about the balance between social spending, taxation, and fiscal responsibility.