Bulgaria’s government has officially decided to withdraw the draft budget for 2026 following widespread public protests, one of the largest demonstrations in recent decades. The Cabinet announced through its press center on Tuesday, as reported by BNT and BNR, that the draft financial frameworks for the State Social Insurance (SSI) and the National Health Insurance Fund (NHIF) will also be withdrawn.

The decision comes after mass protests erupted across the country on Monday evening, with demonstrators criticizing the draft budget for increasing taxes and social security contributions on the private sector while directing more funds to the state sector. The capital, Sofia, saw tens of thousands of participants, while other major cities including Varna, Plovdiv, Burgas, Stara Zagora, Dobrich, Sliven, Veliko Tarnovo, Shumen, Ruse, Lovech, Blagoevgrad, and Gotse Delchev also hosted significant demonstrations.

The Council of Ministers formally proposed the National Assembly adopt a resolution to withdraw the draft Law on the State Budget for 2026. This measure was taken during an absentee government meeting and includes the withdrawal of related draft laws covering the budgets of the NHIF and SSI. The decision has already been submitted to Parliament, after which the government will initiate a new budget procedure.

Academician Nikolai Denkov, of the opposition WCC-DB, emphasized that the public had demanded the government’s resignation during the protests and that the opposition was obliged to respond. He noted that the demonstrations, initially focused on requesting a revised budget, had expanded into broader demands for accountability and government action. WCC-DB now insists on a full government resignation, not merely amendments to the financial plan.

In parallel, Finance Minister Temenuzhka Petkova scheduled discussions with unions and employers to adjust the budget for the coming year. The government’s withdrawal of the 2026 draft signals a clear response to public pressure, while the National Assembly’s formal acceptance of the measure will pave the way for drafting a revised financial plan.

The protests highlighted widespread dissatisfaction with the proposed fiscal policies, underscoring the tensions between the private sector’s contributions and the state’s allocation priorities. The government’s swift withdrawal of the draft is aimed at calming public unrest and creating space for consultations on a more broadly acceptable budget for 2026.

The 2026 budget was originally projected to raise significant additional revenue from private sector taxes and social contributions, but with the withdrawal, all financial figures will now be reconsidered, including conversion to euros following Bulgaria’s planned eurozone entry.