Bulgaria Unveils 2027 State Budget Draft at UNWE
The budget sets the vision for the development of the state. Prime Minister Rumen Radev and Finance Minister Galab Donev introduced the financial framework under the motto Budget 2027 – Financial Recovery and Basis for Social and Economic Development. The draft targets a deficit of 3.5% of gross domestic product (GDP) while grappling with rising public expenditures and structural financial deficits. The draft state budget itself has not yet been published; political formations in parliament commented solely on the tables presented amid applause at UNWE by Prime Minister Rumen Radev and Vice Prime Minister and Minister of Finance Galab Donev.
Balancing Public Debt with Targeted Social Support
The proposed financial framework attempts a difficult balance between reining in public debt and maintaining social support systems. Total public debt is planned to reach 44.3 billion euros, or 31.4% of GDP, in 2027, before climbing to 50.7 billion euros (33.6% of GDP) in 2028 and 56.7 billion euros by 2029 (35.5% of GDP). Budget 2027 projects a GDP growth rate of 2.5%, with gross domestic product reaching a total sum of 141.3 billion euros. Social payments and family supports see targeted increases in the proposal. Compensation for raising a child during the second year is set to rise to 450 euros, with maternity support increasing from 50 to 70%. Annual tax relief proposals scale up to 5,000 euros for one child, 10,000 euros for two children, and 15,000 euros for three or more children. The maximum pension will increase by slightly over 130 euros to reach 1,874 euros starting July 1, alongside indexation via the Swiss rule, Mediapool.bg reported. Allocations dedicated to science within the budget exceed 62 million euros.
Freezing Ministerial Pay and Restricting Public Administration
To control spending, the government enforces strict wage restraints across public sectors. Prime Minister Radev described the state’s finances as a heavy truck with failed brakes going down toward a precipice,
defending the need to cap administrative expansion. Tax structures introduce a new levy on corporate excess profits as well as taxes on fringe benefits—such as company cars and apartments—used for personal consumption.
Facing Criticism from Parliamentary Opposition Parties
Opposition parties in parliament met the UNWE presentation with swift criticism. Temenuzka Petkova of GERB criticized the administration for relying on National Audit Office reports to justify new borrowing of up to 8.6 billion euros and increases in the maximum social security income. Ivaylo Mirchev of Democratic Bulgaria claimed the government misled the public by presenting a cash deficit of 3.5%, while the accrual-based deficit sits between 4.2 and 4.3 per cent. Vazrazhdane deputy leader Tsoncho Ganev dismissed the plan as a continuation of previous policies that institutionalize permanent impoverishment. Representatives of GERB speaking on the matter included former finance, education, and energy ministers Temenuzka Petkova, Krassimir Valchev, and Zhelyo Stankov, who argued the plan is neither left, right, nor social. Meanwhile, the European Commission raised concerns regarding Bulgarian expenditures in Budget 2027, inquiring with the country regarding the alignment of the 2027 budgetary plan with European fiscal rules.
Public Consultations and Legislative Timeline
Smaller tripartite meetings will take place next week, followed by a formal review in the National Council for Social Cooperation on Wednesday. Individual government ministers will also host dedicated press conferences to detail sectoral budgets in the coming weeks.
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