Budget of Discord: Ruling and Opposition in New Dispute Over the Draft of the Country's Fiscal Plan

Debate over Bulgaria’s 2026 draft budget continues in Parliament, as tensions between the government and employers remain high—despite yesterday’s pledges that dialogue had been restored.

Today, November 7, the Employers’ Association issued a statement expressing strong indignation over recent comments made by MPs regarding the business community.

• President Radev sees "the budget as a tool for political survival" and not for economic development

The association reminded lawmakers that the state budget is funded by taxes paid by businesses, which in turn sustain the public administration. They warned that the government’s current proposal would directly disadvantage everyone working in the real economy—by between 10 and 100 leva per month—to finance yet another pay rise for civil servants.

In their open letter to the media, the employers voiced disappointment over what they described as “forgotten promises” to maintain current tax levels and streamline the state administration.

They called for the restoration of genuine social dialogue and respect for the contribution of those employed in the real sector.

• Tripartite Council Meeting Collapses After Employers’ Boycott

The government reassured that it would take into account the employers' demands and said there would be a budget.

Boyko Borissov, leader of GERB, said:

“We had a very good discussion and restored the dialogue. I regret that for months they were absent, while the government endured criticism. But that’s now behind us. GERB has always defended small and medium-sized businesses — the golden goose that lays the budget’s eggs — so dialogue with them, and with the trade unions, is essential.”

He added that the ruling parties had agreed to include employers in a joint political council to address structural budget distortions in the coming year.

Delyan Peevski, leader of MRF– New Beginning, commented briefly:

“The budget will be passed. If anyone has something to say, they can say it. We stand by our position — everything we do is for the people.”

Opposition parties, however, sharply criticised the proposed budget.

Assen Vassilev of WCC–DB argued: Right now, every worker and every business will pay so that Peevski’s piggy banks can be filled. The real question is whether Borissov will vote for Peevski’s budget — and betray the reputation of a right-wing party that doesn’t raise taxes.”

Responding to claims that the public administration has become bloated, the Interior Minister, Daniel Mitov, defended his ministry, noting that while the Interior Ministry’s staff has been reduced by 12,000 officers over the past 15 years, its responsibilities have only grown.

Daniel Mitov, Minister of Interior:“Optimisations can and will be made, but claims that we have the highest number of police per capita are made by people who do not know what they are talking about. When so many responsibilities are concentrated in a single institution, it is inevitable that the ministry will require staff to deal with each of those areas. I repeat: optimisations can and will take place, but they must be carried out carefully so as not to strip capacity in crucial areas. Once the budget process is over and the passions have calmed down — perhaps at the start of next year — we will present a considered plan for optimisation, but it must be well thought through.”

According to government sources, a new meeting of the National Council for Tripartite Cooperation will be scheduled next week. By law, the draft budget must be reviewed there before moving to the Council of Ministers and then to Parliament.