Democrats for Strong Bulgaria: Proposed 2027 State Budget Lacks Political Will for Reforms

In a statement released on Sunday, the Democrats for Strong Bulgaria (DSB) party, which is part of the Democratic Bulgaria parliamentary group, said that the proposed state budget…

In a statement released on Sunday, the Democrats for Strong Bulgaria (DSB) party, which is part of the Democratic Bulgaria parliamentary group, said that the proposed state budget for 2027 reveals a lack of political will to implement reforms, curb persistent deficits, and bring the growing public debt under control.

The Finance Ministry published the draft 2027 State Budget Act on Friday, after Prime Minister Rumen Radev and Deputy Prime Minister and Finance Minister Galab Donev presented the main parameters of next year's fiscal framework earlier that day at the University of National and World Economy. New government borrowing is projected to amount to EUR 8.6 billion in 2027, bringing total government debt to 31.4% of GDP. Borrowing is expected to amount to EUR 8.5 billion in 2028 and EUR 7.9 billion in 2029.

DSB wrote: "In the current economic climate, the budget must encourage private investment, higher productivity, and growth in employment and incomes. At the same time, the government must curb inefficient spending to reduce the debt burden without imposing new tax burdens. The Radev cabinet's draft budget fails on both counts." The party accused Radev and Donev of choosing to delay their decisions despite having the necessary parliamentary majority.

The DSB continued: "With economic growth projected, the Radev cabinet is forecasting a deficit of 4.2% on an accrual basis. It is missing the opportunity to use this growth to reduce the deficit and build up reserves. According to the cabinet's estimates, interest payments will increase approximately threefold by 2029.

As a result, an ever-larger share of taxpayers' money will go toward servicing the debt, while an ever-smaller share will remain for investments, public services, and crisis support." The party accused the cabinet of attempting to cover the deficit by taxing windfall profits and raising social security contribution thresholds, even though such measures would reduce the net income of the affected workers and limit companies' funds for investment and new jobs. The DSB believes that the government is merely paying lip service to administrative reform.