Lidiya Shuleva warns Bulgaria faces debt spiral in 2027

ByEnigma 808

Former Deputy Prime Minister Lidiya Shuleva has identified strategic deficiencies and excessive spending relative to GDP as Bulgaria’s primary budgetary concerns rather than pension insurance and dividend tax increases. Speaking on Bulgarian National Radio, Shuleva criticized the 2026 draft budget for allocating 48.5 percent of GDP to expenditures, exceeding the 40 percent legal threshold maintained through 2025, while the two percentage point social security hike represents a 10 percent contribution jump overall.

Bulgaria faces projected debt service costs tripling from 400 million leva in 2024 to 1.2 billion leva by 2028 under the three-year forecast, with planned borrowing reaching 26.5 billion leva, financing the spending surge. Shuleva warned that this trajectory creates mounting pressure between public and private sectors, already contending with European economic conditions and trade disruptions.

The former economy minister characterized delayed special management appointments for Lukoil as inadequate last-minute interventions, suggesting eurozone entry benefits depend on high-value production investments rather than fiscal policies that negatively affect business environments.

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    Besides writing and being a content creator, Enigma 808 sometimes likes to watch paint dry on walls, listening to ASMR while timing snails racing. Such is life.