2027 Budget: 3.5% deficit, €8.6 billion in new debt and 5% pay rise

Prime Minister Rumen Radev has announced the parameters of the draft 2027 state budget at the University of National and World Economy in Sofia. The budget has been drawn up on the basis of a deficit amounting to 3.5% of gross domestic product (GDP). The state is expected to incur €8.6 billion in new debt next year.

The Prime Minister identified the government’s goal as putting public finances back on a sound footing, so that by the end of 2029 the deficit is brought down to the required 3% of GDP and the level of public debt is reduced, our reporter Tsvetelina Stoyanova reports.

He added that reform of the public administration would continue. Salaries in the ministries responsible for defence and the interior will not be increased next year, while remuneration on management boards will be cut by 40%, the Prime Minister pledged.

The minimum monthly wage will be €660. Pensions will be increased from 1 July under the so-called Swiss Rule, by around 8%. Salaries in the public sector will rise by 5%, while teachers' pay will increase by 7.5%.

Edited by Miglena Ivanova