Draft State Budget To Be Submitted to Parliament By the End of June, Says Finance Minister

The draft state budget will be submitted to the Parliament by the end of June, meaning that it will first be reviewed by the National Council for Tripartite Cooperation and approved by the Council of Ministers. The assurance came from Deputy Prime Minister and Finance Minister Galab Donev. Earlier, the Chair of the Fiscal Council and former Finance Minister advised the government to liquidate the Bulgarian Development Bank, arguing that removing pensioners from the civil service could save €620 million over six months.

A total of €620 million could be saved by the end of the year if all pensioners employed in the state administration were dismissed. In the security sector alone, there are around 6,300 such employees, according to Dyankov. His calculations indicate that, if the 20-salary severance payments in the Ministries of Interior and Defence were not paid, a further €450 million could be saved over a six-month period.

The governing coalition is currently discussing realistic figures and the necessary measures for the 2026 Budget before submitting the draft, Donev said.

Galab Donev, Deputy Prime Minister and Finance Minister: “We are currently preparing all procedures to proceed according to schedule, so that the entire coordination process is completed by the end of June and the draft can be submitted to the National Assembly for consideration before the end of the month. Measures are needed on both the revenue and expenditure sides so that we can move closer to realistic and sustainable budget figures.”

Earlier, speaking on Bulgarian National Television’s 'The Day Begins' programme on June 16, the Chair of the Fiscal Council proposed measures aimed at reducing the deficit by approximately €2.3 billion.

Simeon Dyankov, Chair of the Fiscal Council: “The Bulgarian Development Bank should be liquidated as a company – it serves only to generate corruption. The BDB has capital of €2.7 billion. €1.3 billion could immediately be returned to the state budget. It is also necessary to equalise conditions between the state administration and the private sector. All pensioners should leave the state administration. There are more than 11,000 of them, with more than half employed in the security sector.”

At a conference in Parliament dedicated to fiscal consolidation, Dyankov stated that €620 million could be saved over six months if all state employees who are pensioners were removed from public service.

Simeon Dyankov, Chair of the Fiscal Council: “If the budget of the Ministry of Interior were cut in half, the average Bulgarian citizen would not notice any reduction in the security system. That is where the largest budget expansions have taken place over the past two to three years. That is where the deepest cuts should be made. There are around 6,300 pensioners currently working in the two security ministries – the Ministry of Defence and the Ministry of Interior. They should leave the system immediately. How? Very simply. The law should be amended so that the 20 salaries they currently receive upon retirement become zero, just as in the private sector.”

The current Finance Minister reacted to Dyankov’s proposals with a smile.

Galab Donev, Deputy Prime Minister and Finance Minister: “I will be more than happy, one day when I am a former Finance Minister, to comment on every proposal and every opinion, and to offer such proposals and opinions myself with great pleasure.”

Donev also noted that work is already under way on the legislative framework for the 2027 Budget.