Balgarianovinite.com The main challenge is not just the size of the deficit, but the vicious budgeting model imposed in recent years – a model based on a continuous increase in public spending, without the necessary connection with labour productivity and the real capabilities of the economy, Progressive Bulgaria’s Floor Leader Petar Vitanov said in a statement from the parliamentary rostrum on Thursday. He reacted to criticism against the 2026 draft budget proposed by his party.
On Wednesday, Finance Minister Galab Donev presented the main parameters of the draft budget for 2026. It envisaged a deficit of 5.7% of GDP, or just over EUR 7.2 billion. The budget projects revenues of EUR 49.561 billion and expenditures of EUR 56.8 billion. Inflation in 2026 is expected to reach 3.6%. The Finance Minister stated that the Government’s objective is to reduce the deficit to 3% of GDP by 2028. Later in the day, the Finance Ministry published on its official website an updated medium-term budget forecast for the 2026-2028 period, which was presented as an explanatory report reasoning the 2026 State Budget Bill. The parameters of the new budget drew criticisms from parliamentary groups.
“In this and the following weeks, we are going to discuss something much more than a budget law – we are discussing the price of populism, the bill that the previous administrations left to the citizens, as well as the responsibility of the current government to restore stability and trust in the public finances of the state,” said Vitanov. He described the budget as not just a sum of numbers, but a matter of security for families, predictability for business and stability for the state. This is not a budget of illusions, but of realism, responsibility and recovery, added the Chair of the parliamentary group.
“Today we hear criticism from the opposition – the same people who used to make fun of others, today they claim to teach us fiscal discipline. They insist on a 3% deficit, after their policy left behind a real deficit of 7.4% with unchanged policies for this year,” said Vitanov.
Vitanov said that previous administrations accumulated huge financial commitments in 2024 and 2025, leaving, what he called, “time bombs” in the state finances. He added that this is how the cabinet was bequeathed EUR 2.2 billion of unsecured liabilities, amounting to nearly 2% of the gross domestic product. “This is not responsible management, but a financial pyramid built on transferring the bills to the next governments and to the taxpayers, so we are stopping the blind distribution, every leva of these inherited commitments will be paid together with uncompromising inspections, and the National Audit Office will conduct a full audit of the Road Infrastructure Agency,” said Vitanov.
Vitanov also stated that the envisaged European derogation for defence spending will drop the budget below 5%, down from the 5,7% envisaged in the proposed budget. He described these expenses as necessary and said that the government will not compromise with the country’s security in an increasingly uncertain world. According to him, if the state “cuts” too sharply, the consequences are felt in business, jobs, incomes and public services. “Our approach is different – we are rehabilitating state finances decisively and faster than European requirements, but without putting economic growth at risk,” said Vitanov.
He concluded by stating that Progressive Bulgaria will not give in to calls to immediately reduce the deficit to 2%. He said that the incomes of working Bulgarians will not be reduced and the burden of consolidation will not be transferred to the people, but will be borne by closing the leaks in the system, limiting abuses, more equitable taxation of certain activities and optimization of the administration. He added that the remuneration of the management of state-owned enterprises will be reduced, bloated control structures will be limited, an end will be put to vicious practices in the indexation of contracts and stricter control over advance payments will be introduced, and funds for roads and municipalities will be paid only after strict control by the competent institutions.
Every budget measure to be considered on its own merit
Every measure included in the government’s draft budget will be assessed on its own merits, while discussions between the Ministry of Finance and trade unions are yet to take place, Vitanov told reporters in Parliament later on Thursday.
“We are the only ones who have dared to reduce the size of the public administration,” Vitanov said. “What we are trying to do is shut off the channels through which public funds are being drained.”
According to him, there are EUR 2.2 billion worth of unpaid contracts for projects that were undertaken without secured funding, said the ruling party’s floor leader. He alleged that some contractors have deliberately delayed issuing invoices in order to avoid paying VAT, effectively keeping the obligations off the books.
“We have reviewed these documents so that these liabilities can eventually be settled. Some of the companies involved are linked to political party leaders and individuals associated with the criminal underworld,” Vitanov said.
The draft budget envisages measures to improve the collection of social security contributions, expected to generate an additional EUR 100 million in revenue, as well as EUR 50 million from the concession fee paid by Sofia Airport.
“The arrangements surrounding Sofia Airport have largely favoured the concessionaire. We are trying to restore a degree of fairness and balance,” he said.
Vitanov also argued that Bulgaria has yet to fully capitalize on its economic relationship with Turkey.
“Unfortunately, we are not making full use of Turkey’s potential. A different approach to our bilateral relations could unlock significant opportunities,” he said. According to Vitanov, the agreement with Botas, combined with other ongoing initiatives, could reshape economic cooperation between the two countries and contribute to Bulgaria’s long-term prosperity. Progressive Bulgaria Floor Leader Says Main Challenge is Not Size of Deficit, but Inherited Vicious Budgeting Model 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-06-25 09:30:00 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