Bulgaria’s 2026 budget brings euro switch, higher taxes

Bulgaria plans to record its first state spending plan denominated entirely in euros as the nation moves toward eurozone entry, with officials projecting a deficit equal to 3% of economic output through 2028. Finance authorities expect the economy to expand by 2.7% while generating 120.1 billion euros in total output, with government collections reaching 42.8% of that figure and outlays hitting 45.8%.

Workers will see their base pay floor rise to 620.20 euros starting next January, matching the new minimum threshold for social insurance contributions. Pension fund contributions from state insurance programs will climb by 2 percentage points, with another single-point increase scheduled for 2028. Medical professionals without specializations must receive at least 1,860 euros monthly under guaranteed minimums, while nurses and related personnel will earn no less than 1,550 euros.

Defense spending jumps to 2.657 billion euros for equipment upgrades and fighter aircraft purchases, climbing to 3.13 billion euros by 2028. Interior ministry allocations hold steady near 2.3 billion euros annually, with most funds covering salaries for police and emergency responders. Health insurance budgets expand by 34 million euros to 5.537 billion euros, driven by wage floor adjustments.