Balgarianovinite.com There are insufficient grounds to delay the entry into force of the 2026 State Budget Act, which should therefore be promulgated in the State Gazette, the President’s administration says in an opinion released by its press secretariat on Wednesday. The National Assembly adopted the Act on July 24, 2026.
Earlier on Wednesday, President Iliana Iotova said she would promulgate the Act.
In the social sphere, the Act increases public spending on pensions, social assistance and healthcare, which should have a positive effect on household incomes and the protection of vulnerable groups, the opinion says.
Regarding the minimum wage, the President’s administration says a European Union directive does not require Member States to use a specific formula. Any mechanism must, however, be based on clear criteria and a predictable procedure, involve the social partners and provide for regular updates. Abolishing the current mechanism does not automatically breach EU law, the opinion says.
The revised system for recording hours worked will not affect contributory service or pension entitlement, as contributory service will continue to be calculated on the basis of social security contributions actually paid. It will, however, affect length of service, paid annual leave and certain benefits. The change will also affect the calculation of additional remuneration for length of service and professional experience for part-time workers.
The most significant consequences will be for people for whom part-time work is their only employment option, the President’s administration explains. A stricter criterion for crediting a full month of service will also affect employees who start work part-way through a month or change employers. The Act does not provide for the recalculation or withdrawal of length of service already credited, the opinion adds.
Requiring civil servants to pay their own social security contributions removes a privilege and establishes more uniform rules for all workers, the President’s administration says.
Several issues concerning a mechanism to offset the social security burden for employees governed by special legislation still require clarification. These include how net incomes will be preserved, how the change will affect pay in the lowest-income sectors and what effect it will have on the attractiveness of public service amid staff shortages.
The Act also provides for an increase in average pensions to preserve pensioners’ purchasing power amid inflation.
There are no significant changes in defence, public order and security, apart from a 10% reduction in staff expenditure across the budget sector, including wages and social security contributions, from September 1, 2026. Automatic pay-indexation mechanisms are frozen, links to the average gross wage are removed, and a general 5% pay increase is introduced for employees of budget-funded organizations. The President’s administration believes this will create difficulties for defence and security bodies but will not significantly disrupt their work.
Funding continues for projects involving water supply, energy efficiency and the upgrading of public infrastructure. Regional policy still needs to be integrated more closely with demographic, social, educational, health and economic policies, the opinion says.
The 2026 State Budget Act contains positive investment intentions but is not a sufficiently strong instrument for reducing social and regional inequalities. Although it provides for accelerated infrastructure investment, scope for stronger economic growth and improved regional connectivity, there is no clear guarantee that investment will prioritize the least developed regions.
The sectoral approach prevails over a targeted policy for narrowing regional disparities, the President’s administration says. Further measures are needed to strengthen regional cohesion, improve access to public services and mitigate the adverse social consequences of revenue measures so that the budget combines fiscal sustainability with social justice and equal opportunities.
From the perspective of the Public Finance Act, the late adoption of the State Budget Act, coupled with its retroactive effect from January 1, departs from the established budget process. Retroactive application provides a legal basis for revenue collected and expenditure incurred under the temporary budget regime.
From a constitutional perspective, retroactive effect is permissible only in exceptional circumstances. The Constitution does not expressly prohibit retroactive application of the State Budget Act, and such circumstances are currently present, the opinion says.
A deficit exceeding 3% of gross domestic product (GDP) departs from the reference value but does not automatically render the State Budget unconstitutional or call Bulgaria’s euro-area membership into question. Following Bulgaria’s accession to the euro area on January 1, 2026, the Maastricht criteria are not a continuing condition of membership.
Although government debt rose to 29.9% of GDP in 2025, it remained well below the reference value of 60% and among the lowest in the European Union. The 2026 budget was adopted under exceptional circumstances that should be considered in the context of the previous budget year, the opinion adds.
The change in the benchmark for magistrates’ salaries, from twice the average monthly wage of budget-sector employees based on National Statistical Institute data to 60% of an MP’s basic monthly salary, also does not warrant returning the Act for reconsideration. Linking magistrates’ pay to MPs’ remuneration does not in itself amount to political dependence, the President’s administration adds. President Finds Insufficient Grounds to Justify Veto of State Budget Act 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-07-29 20:09:33 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