Parliamentary Committee Approves Revised 2026 State Budget Draft at First Reading

MPs on December 9 approved at first reading in the parliamentary budget committee all three draft budgets — the state budget, the Social Security budget and the National Health Insurance Fund budget. Although the proposals secured near-unanimous backing at yesterday’s National Council for Tripartite Cooperation, today they faced sharp criticism over the lack of reforms and what the opposition described as inaccurately calculated revenues.

Three issues dominated the debate: the absence of pension reform despite a growing deficit at the National Social Security Institute, now exceeding 12 billion leva; the funding of pay rises for nurses and midwives; and what critics called overestimated revenue projections. The finance, social policy and health ministers personally responded to MPs’ questions.

While broadly supportive of the budget framework, the National Association of Municipalities raised two objections to recently added provisions, which they argue are poorly thought through. They oppose the requirement to cut unfilled posts — a reduction of 5,500 is planned over the next three years — and the freezing of salaries for mayors and deputy mayors.

Silvia Georgieva, Executive Director of the National Association of Municipalities:
"You cannot restrict municipalities in this way from determining staffing levels funded through their own local taxes and fees. Many deputy mayors are already on, or close to, the minimum wage. Freezing their salaries until December 2025, while the minimum wage rises on 1 January, will create difficulties. This needs reconsideration."

Remarks on the State Social Security budget again came from the Fiscal Council.

Prof. Bogomil Manov, Fiscal Council:
"Spending in 2026 is set to grow by 9%, outpacing expected contributions revenue growth of 8.4%. This trajectory will inevitably lead to higher taxes and insurance contributions."

Business associations echoed concerns, pointing out that although social security contributions will not rise immediately, the medium-term budget forecast already outlines increases for the next three years.

Maria Micheva, Bulgarian Industrial Association:
"We see this as a conditional intention by the government, but it is essential that we clarify which parameters should change before anything is implemented."

The NSSI officials explained that although contributions will not rise, pensions will increase in July in accordance with the “Swiss rule”.

Vesela Karaivanova, manager of the National Social Security Institute: ""The percentage will be between 7% and 8%. We will finalise it when early-year statistical data becomes available."

Trade unions welcomed the agreed 10% rise in public-sector salaries.

Asya Ganeva, CITUB:
"We secured what mattered to us — a horizontal pay policy, increasing wages not by 5% but by 10%."

A dispute in the Budget Committee was sparked by the increase in pay for healthcare professionals, and in particular for nurses.

Silvi Kirilov, Minister of Health: “This problem did not arise yesterday or today; many, many actions have accumulated and multiplied over time, leading to the situation we face now. Nurses, ladies and gentlemen, are people we must learn to respect.”

Asen Vasilev, WCC–DB: “You say you respect the nurses, yet you will not raise their salaries. And you said you had taken the Hippocratic Oath — but you are not here as a doctor, you are here as a minister.”

photos by BTA

A solution to this issue was later found.

Temenuzhka Petkova, Minister of Finance: “I would like to thank our colleagues from the opposition for their criticism, for their efforts to enable us to respond to that criticism and to convince them of what we are actually doing, as well as to convince all of you that the proposed budget law aims solely to ensure that Bulgaria has stable public finances.”

The three budgets are expected to be put to a first reading by the end of the week.