In a Facebook post on Saturday, Continue the Change leader Assen Vassilev highlighted the strengths and weaknesses of the draft 2027 State Budget Act presented by the government on Friday.
Vassilev acknowledged several positive aspects of the draft budget. “Apparently, the government has taken our criticism and proposals regarding the 2026 budget on board. In the 2027 budget, increases in obligations (the maximum contributory income, the minimum contributory income, etc.) are accompanied by improvements in entitlements: a number of social benefits have been increased, the maximum pension will rise from July 2027, minimum and maximum unemployment benefits have been raised, and, most importantly, tax relief for working parents has been increased,” he said.
He added, however, that some of the increases could be perceived by the public as inadequate. He cited the monthly increase in school scholarships of EUR 4 and the increase in child benefits of EUR 4.43 as examples.
Forecasts that inflation in 2027 will stand at 4% and the GDP deflator at 5.7% have nothing to do with reality, Vassilev said. Inflation (and the deflator) will most likely once again turn out to be twice as high as the Finance Ministry’s projections, he added.
According to Vassilev, the budget contains no adequate measures to curb inflation at the production stage. Resources allocated to limiting electricity prices for businesses are insufficient, there is no compensation for high diesel and gas prices, no support to offset rising fertiliser costs, and no crisis-response package or buffer of any kind.
The CC leader also pointed to a sharp decline in investment. The government expects businesses to invest EUR 3 billion more in 2027 than in 2026, partly offsetting the drop in public investment. While this is not impossible, it is unlikely given the excess profits tax, limited electricity price compensation and high gas and diesel prices, he said. Vassilev added that the macroeconomic framework’s investment projections were flawed, arguing that the decline would amount to at least EUR 4 billion rather than EUR 1 billion.
The impoverishment of households and declining consumption are among the biggest problems with the 2027 budget, Vassilev said. The minimum monthly wage is set at EUR 660. Had the previous formula been used, it would have reached EUR 690. This not only hits consumption among the poorest households but also widens the inequality gap once again, he said. The minimum pension will rise to EUR 374, while the poverty line is set at EUR 443. This means that not only will pensioners receiving the minimum pension fall below the poverty line, but another 500,000 pensioners will also receive pensions below that threshold. As a result, more than 1.2 million pensioners will be living below the poverty line, with an estimated EUR 70 shortfall at the end of each month to cover household bills and buy basic necessities such as medicine and bread, Vassilev added.
In addition to reducing household incomes and failing to address rising business costs, the government has also introduced a range of additional and more varied taxes that will further constrain consumption and investment, he said. The only relief measures included in the draft are an increase in the VAT registration threshold to EUR 70,000 and the previously mentioned increase in tax relief for families with children, Vassilev noted.
“Mr Radev used the metaphor of a truck without brakes to describe the budget. I will offer another metaphor: the budget is like a skyscraper built on the foundations of a single-storey house,” Vassilev said.
According to Vassilev, “these mistakes call for entirely new, realistic planning and/or a reassessment of the fundamental policies on incomes, taxation and investment.”

CC Leader Vassilev Highlights Strengths, Weaknesses of 2027 Draft Budget THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-11-07 07:40:00

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