Unbalanced 2026 Budget Worsens bulgaria’s Situation

The proposed 2026 budget isn’t balanced; it mirrors this year’s, and that’s a notable problem. According to sociologist Kancho Stoychev, deputy chairman of AIKB and responsible for small and medium-sized businesses, the core issue lies in unrealistic revenue projections. “This budget only aggravates Bulgaria‘s situation and is even more terrible because it affects taxes,” Stoychev stated in an interview with BNR. He argues that ill-considered tax adjustments are already driving capital outflow from Bulgaria, making it the second largest in the EU.

Stoychev emphasized the dangers of increasing taxes during a period of economic instability. He believes this approach discourages investment and pushes businesses to relocate. The budget’s reliance on optimistic income forecasts, he contends, sets it up for failure and will likely necessitate mid-year revisions and further economic strain.

He further explained that the current economic climate demands a more cautious and realistic fiscal approach. Instead of increasing taxes, the government should focus on attracting foreign investment, reducing bureaucratic hurdles for businesses, and improving the overall business environment. Stoychev warned that continuing down the current path will only exacerbate Bulgaria’s economic challenges and hinder its long-term growth prospects.

Stoychev also pointed to the need for greater transparency and public consultation in the budget process. He believes that involving businesses and experts in the discussion would lead to a more informed and effective fiscal plan.