Finance Minister Donev presents 2026 draft budget with 5.7% deficit target

Minister of Finance Galab Donev presented today the main parameters of the 2026 state budget. The target budget deficit for the current year is 5.7%, Galab Donev announced. This amounts to just over EUR 7.2 billion in deficit, according to BNR’s reporter Marta Mladenova. In this context, additional borrowing will be required, on top of the already approved EUR 3.8 billion.

The maximum insurable income is set to be raised to EUR 2,300 from August 1, 2026, a move expected to generate just over EUR 90 million in additional revenue. From August 1, a 30% increase in vignette fees is also planned, along with an expansion of the toll system.

Public sector employees will begin paying social security contributions on an 80/20 split from August 1 this year, with the ratio set to be aligned with that of other workers at 60/40 from the beginning of 2027.

Edited by Miglena Ivanova

Translated by Kostadin Atanasov