Bulgaria’s 2026 budget banks on tax surge, tight spending
Bulgaria’s Finance Ministry released budget projections showing the government expects to collect more than 31.2 billion euros during 2026 while planning expenditures approaching 17.5 billion euros. The draft spending plan and updated three-year fiscal forecast through 2028 entered public consultation after official publication.
Value-added tax will generate nearly 15 billion euros as the largest revenue source, followed by personal income levies at 4.9 billion euros and business taxes contributing 3.8 billion euros. Total tax collections should exceed 28.4 billion euros under the proposal. Personnel costs will consume over 7.3 billion euros of the 14.5 billion euros allocated for current operations. Capital investments will receive almost 2.9 billion euros for infrastructure and equipment purchases. Authorities set aside 67 million euros as reserves for disasters and emergencies.
Regional governments will receive transfers exceeding 5.1 billion euros from the 16.2 billion euros designated for intergovernmental payments. Municipal funding supports schools, social programs and local construction projects as part of decentralization efforts. Officials emphasized that adhering to established budget procedures remains essential for developing main fiscal documents with proper timelines and accountability measures.
