The target of Budget 2026 should be a budget deficit lower than or equal to 2.9%, with a clear goal of consolidation and achieving a deficit below 2% in 2027, the Bulgarian Industrial Capital Association (BICA) said in a statement Friday. “At the same time, budget revenues and expenditures should be planned realistically, with fiscal buffers provided for the automatic reduction of non-priority spending in the event of revenue shortfalls or delays in European payments,” the organization wrote in recommendations adopted at a meeting of its National Council and made public by its press office.
According to BICA, deficit consolidation should be achieved by avoiding growth in the overall wages bill in the public administration (allowing for internal reallocation and linking pay to performance), targeted social payments, prioritization of capital expenditures, and increased revenue collection without raising tax or social security rates.
It is necessary to slow the growth rate of public debt and stabilize it below 30% of GDP, as well as to pursue a trend of gradual reduction in the coming years, supported by a positive budget balance and economic growth, says BICA.
The organization insists that the tax system should remain unchanged, as it is “effective, balanced, competitive, and neutral”, which provides a strategic advantage for attracting investment.
To avoid a fiscal crisis, BICA calls for strict fiscal discipline in 2026. Achieving this will require urgent structural reforms. The focus, the organization says, should be on the efficiency of public spending and reforms that cut unnecessary expenses and support economic growth, rather than merely mechanical spending cuts.
An important step toward fiscal stability, according to BICA, would be the introduction of mandatory annual expenditure reviews by function. The organization recommends that each ministry and agency prepare an annual savings plan of at least 5% of current maintenance costs.
BICA also insists that the minimum wage remain unchanged in 2026, until an objective mechanism consistent with the EU directive is adopted.
The association calls for funding to be included in Budget 2026 for an automatic compensation mechanism for non-household electricity consumers in the event of significant increases in electricity prices above the European average.
On Thursday, Finance Minister Temenuzhka Petkova announced that the draft state budget must be submitted to the National Assembly by the end of October. Industrial Capital Association Urges Target Deficit Under 3% in 2026 Budget, Maintaining Current Tax System THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2025-10-24 16:46:00 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law