Deputy Governor of the Bulgarian National Bank Petar Chobanov has urged the ruling coalition not to raise taxes, warning that such a move would place unnecessary strain on the economy and local businesses. In an interview with BNT, Chobanov stressed that the government should avoid tax hikes, emphasizing that the focus should instead be on fostering economic growth and stability.

Chobanov highlighted the government’s recent efforts to secure long-term economic partnerships, citing the planned strategic collaboration with the company Rheinmetall as a positive example of proactive economic policy. At the same time, he acknowledged that the planned increase in social security contributions, set to rise by two percentage points to a range of 10–13%, is a logical step to ensure the sustainability of the pension system. This measure, he noted, aims to maintain balance and strengthen the financial framework of the social security system.

In the context of the 2026 budget, Chobanov pointed out the importance of structural reforms to achieve a balanced and efficient fiscal system. He called for public spending to be more results-oriented, particularly in healthcare, education, and social policy, where investments should produce measurable outcomes. In education, he emphasized the need to cultivate a literate and competitive workforce capable of supporting a high-value economy, while in healthcare, the focus should shift toward prevention and overall public health rather than solely treatment.

Chobanov also stressed that the 2026 budget is the first to be prepared after Bulgaria’s entry into the eurozone, meaning it will be scrutinized by the European Commission for revenue realism, spending feasibility, and overall economic impact. He underscored the necessity of revising automatic wage increase mechanisms embedded in legislation to prevent unsubstantiated hikes. Maintaining fiscal discipline, he concluded, is essential for complying with the Maastricht criteria that underpinned Bulgaria’s eurozone accession.

Source: BNT interview