Budget Committee Approves at First Reading of New State Borrowing of Up to €3.8 Billion

The Parliamentary Budget Committee has approved at first reading the government's proposal to raise new state debt of up to €3.8 billion at the request of the Council of Ministers.

The funds will be used to finance projects under the Recovery and Resilience Plan that must be paid for by the end of August. The money will also be allocated to social payments and to ensuring the payment of salaries in the public sector.

According to the governing parties, the borrowing is necessary to prevent Bulgaria from losing European funding. The opposition criticised the proposal, arguing that the provisions have not been sufficiently refined and that there is a lack of clarity regarding which projects are ready for implementation and which are still awaiting financing.

Bulgaria is expected to receive the fourth payment under the Recovery and Resilience Plan at the end of July, with the fifth payment anticipated by the end of the year.

Galab Donev, Minister of Finance:

“These will be funds that will allow us, in tranches, to ensure the state's fiscal liquidity through to the end of the year.”

Konstantin Prodanov, Chair of the Budget Committee:

“We should complete all projects by 31 August. They are 98% contracted, but in order not to lose these funds, they should be certified by the end of August.”

Temenuzhka Petkova, GERB–UDF:

“All of these issues will find their solution when you submit the annual State Budget Act for 2026.”

Venko Sabrutev, We Continue the Change:

“You may today allocate €300 million for the construction of a new motorway section, but it may still be only at the conceptual design stage. You do not have the right to take out a loan for that activity.”

Martin Dimitrov, Democratic Bulgaria:

“We are entering a spiral that is risky and dangerous.”

Tsoncho Ganev, Vazrazhdane:

“Is there a possibility or a risk that these projects may ultimately not be recognised?”