Ex-finance minister slams wasteful 2026 budget

Former Finance Minister Milen Velchev criticized the proposed state budget as wasteful and lacking structural reforms during an interview with Bulgarian National Radio. He argued the spending plan reflects excessive generosity in social programs and pension increases from recent years, while tying budget sector income growth to arbitrary indicators disconnected from productivity gains.

Velchev contended the government should limit budget salary increases to sustainable 5 percent levels combined with workforce reductions in the public sector as the taxpayer base shrinks. He predicted the planned doubling of dividend taxes from 5 to 10 percent would push entrepreneurs toward alternative compensation structures to avoid the higher levy. The former minister warned against raising the overall tax burden, stating current collection rates already generate adequate revenue while spending remains the fundamental problem requiring correction.