'Democratic Bulgaria' Describes 2027 Draft Budget as a Budget of ‘Terrible Decline’

“Democratic Bulgaria” does not accept the government’s projections for the 2027 budget. Representatives of the political alliance described the fiscal framework as a budget of ‘terrible decline’, warning of higher inflation, rising debt and further impoverishment of Bulgarian citizens.

Ivaylo Mirchev, co-chairman of Yes, Bulgaria: ‘The government of lies has just presented the budget of terrible decline.’

He said the government had provided misleading information about some of the key parameters of the fiscal framework. According to Mirchev, the announced budget deficit of 3.5% did not reflect the true picture, with the actual deficit set to reach 4.2%. He also criticised the forecasts for industrial development and economic growth, as well as plans to take on an additional €9bn in debt.

Ivaylo Mirchev, co-chairman of Yes, Bulgaria: ‘We were told that Bulgaria would have sound public finances. Instead, we were presented with another €9bn in debt. This is the budget of terrible decline.’

He drew parallels with the government of Zhan Videnov and warned of the danger of the country once again entering a spiral of debt, high budget deficits and low economic growth. Mirchev recalled that, in his view, it was the government of Ivan Kostov that had resolved the problems following the crisis of that period.

Martin Dimitrov also described the fiscal framework as a budget of ‘a terrifying downward spiral”’ and a ‘very harsh winter’. He argued that the combination of a high deficit, additional tax burdens and rising oil prices would lead to further price increases and a more severe deterioration in household living standards.

Martin Dimitrov, Democratic Bulgaria MP: ‘A budget of terrible decline and a budget for a very harsh winter. A winter of shattered hopes, because people expected better prices but will instead face a sharp rise in inflation and prices because of the huge deficit. And it is only right to refer to the deficit calculated under European rules, as is done across the European Union, rather than on a cash basis, as the government did, prompting 30 headlines from your side that were inaccurate.’

According to Dimitrov, the government was not proposing sufficient measures to curb spending or change the model against which citizens had protested in 2025. He called on the government to withdraw the draft, revise it and put forward a budget with a lower deficit.

Martin Dimitrov, Democratic Bulgaria MP: ‘This budget is not fit to be published or presented. It would be better not to show it at all, but to take it back, withdraw it, revise it and put forward a budget with a much lower deficit, so that at least the government does not fuel inflation.’

Bozhidar Bozhanov said that Democratic Bulgaria had been putting forward specific measures to reduce the deficit for several consecutive budget cycles. Among the proposals he cited were reforms concerning pensioners in the Ministry of the Interior, the medical assessment system (TELK) and the social security contributions paid by civil servants.

Bozhidar Bozhanov, co-chairman of Yes, Bulgaria: ‘For several consecutive budget cycles, we have been proposing ways to reduce the deficit. In fact, the government has adopted only a small number of these proposals, which are also the only measures it has put forward to reduce the deficit. These include the issue of pensioners in the Ministry of the Interior, reform of the TELK system and social security contributions for civil servants.’

Photos: BTA

He said that some of these ideas had already been taken on board by the government, but expressed serious concerns that they would be implemented incorrectly and ineffectively.

Bozhidar Bozhanov, co-chairman of Yes, Bulgaria: ‘If they want ideas, they can look at the proposals we have submitted to parliament's registry, including during this parliamentary term. We will remind them of these proposals and submit them again, so they can see how spending can be cut.’