The Bulgarian government has approved the draft State Budget Act for 2026 together with the Updated Medium-Term Budget Forecast for 2026–2028, which outlines the fiscal policies, macroeconomic assumptions and investment priorities for the next three years. The documents form the foundation of next year’s fiscal framework and incorporate Bulgaria’s preparations for adopting the euro on 1 January 2026.

This year’s budget package — covering the central government budget, the State Social Security (SSS) budget, and the National Health Insurance Fund (NHIF) — received considerably broader support from the National Council for Tripartite Cooperation (NCTC). The SSS budget was approved unanimously, the NHIF budget passed with abstentions from the Confederation of Independent Trade Unions (CITUB) and the Bulgarian Industrial Capital Association (AICB), while only the AICB abstained from the central government budget vote.

The outcome meets Prime Minister Rosen Zhelyazkov’s expectation for a stronger mandate from social partners. Government, employer organizations and trade unions also signaled commitment to beginning structural reforms in 2026 — including decoupling salaries in numerous public-sector areas from the national average wage, and reducing thousands of long-vacant positions across state administrations.

The government is expected to submit the draft laws to Parliament by the end of the day.

Fiscal Framework: Stability and Eurozone Alignment

Budget 2026 is aligned with the National Medium-Term Fiscal-Structural Plan for 2025–2028 — Bulgaria’s first comprehensive multi-year fiscal strategy. The plan prioritizes long-term financial sustainability, improved business conditions, and investment predictability.

In accordance with Bulgaria’s euro adoption schedule, all budget documents for 2026 are drafted in euros at the official fixed exchange rate of 1.95583 leva per euro.

The autumn macroeconomic forecast prepared by the Ministry of Finance projects GDP growth of 2.7% in 2026, easing slightly to 2.5–2.4% in 2027–2028. Inflation is expected to stay at around 3.5% next year before gradually declining to 2.5% by 2028. The forecast has been endorsed by the Fiscal Council and is broadly in line with projections from the European Commission and the OECD.

Under the consolidated fiscal program, the budget deficit is planned at:

3.0% of GDP in 2026,

2.8% in 2027,

2.4% in 2028.

State debt is projected to rise gradually but remain moderate by EU standards. The government expects public debt to reach: