Caretaker Government Approves 5% Subsidy Rise for State-Supported Organizations

Sofia, Bulgaria – The Bulgarian caretaker government is set to approve a 5% increase in state subsidies for organizations that rely on state funding but are not directly publicly funded. The decision, announced on Thursday, March 12, 2026, by Finance Minister Georgi Klisurski and Transport and Communications Minister Korman Ismailov, follows negotiations with trade unions regarding a 5% pay rise for employees in these sectors.

Addressing Wage Concerns and Protests

The subsidy increase aims to align these organizations with publicly funded entities, which had already received a 5% wage increase under the current budget extension law. This move comes after protests by employees of Bulgarian Posts on Monday, who demanded the same increase, disrupting pension payments to highlight their concerns. Minister Ismailov noted that employees at Bulgarian Posts were receiving minimum wage while the executive director earned nearly 8,000 euros.

Affected Organizations

The 5% subsidy increase will benefit the following organizations:

• BDZ-Passenger Transport
• National Railway Infrastructure Company
• Bulgarian Posts
• Public transport systems in all municipalities in Bulgaria

Financial Details and Implementation

The total amount allocated for this increase is EUR 31.3 million. Minister Klisurski clarified that this is a one-time allocation within the framework of the current budget extension law. Further discussions regarding the overall size of the subsidy and future increases will be held when a regular budget is adopted for 2026.

Funds will be transferred to municipalities and companies immediately following the public release of the Council of Ministers’ decisions.

Caretaker Government Constraints

As a caretaker government, the Council of Ministers operates under certain restrictions. According to the Institute for Government, caretaker governments typically limit themselves to “essential business” and avoid making new policy announcements or long-term commitments unless necessary for public interest. However, recent conventions suggest that some restrictions are applied even during leadership contests, as seen during the final weeks of Boris Johnson’s government. More information on caretaker governments can be found here.

Background on Caretaker Governments

A caretaker government is a temporary government that performs duties until a regular government is elected or formed. As defined by Wikipedia, these governments generally maintain the status quo and do not propose new legislation due to their lack of a direct electoral mandate.