Reactions in Parliament After Finance Minister Announces 7.4% Budget Deficit

Following Finance Minister Galab Donev’s announcement that Bulgaria’s projected budget deficit for 2026 could reach 7.4% of GDP, opposition parties urged the government to stop fuelling panic and instead present a clear plan for reforms and fiscal consolidation.

GERB-UDF Challenges Deficit Figures

Representatives of GERB-UDF questioned how the government's estimate had risen so sharply, noting that preliminary data as at 30 May indicated a deficit of around 2% of GDP, while officials are now speaking of 7.4%.

Temenuzhka Petkova, MP from GERB-UDF rejected accusations directed at the previous government.

“There are no invoices hidden away in drawers. All such liabilities have been properly accounted for and reflected in both expenditure and the 2025 budget deficit. We have paid everything provided for under the 2025 budget. It would be useful for the current government to clarify whether all obligations under the Botas contract have been recorded and how much has actually been paid.”

• Deputy Prime Minister Donev: Budget deficit is 7.4%

We Continue the Change and Democratic Bulgaria Dispute the Assessment

Members of We Continue the Change and Democratic Bulgaria recalled that in 2023, during a previous caretaker government led by Donev, deficit projections had reached 6.8%, while the final outcome was around 2%.

Asen Vasilev, MP from We Continue the Change argued that spending controls could significantly reduce the deficit.

“There was a one-billion increase in maintenance spending—coffee, water, toilet paper, new cars, renovations and so on. By addressing that alone, the deficit fell from 6.8% to 5.8%. If expenditure is reviewed carefully, the budget can comfortably be brought within the 3% threshold.”

Martin Dimitrov, MP from Democratic Bulgaria, also questioned the government's calculations.

“If the error is similar this time, the problem is manageable.

Is this 7.4% deficit real or not?

In our view, it is not—particularly under the European accrual-based methodology, where liabilities are counted in the deficit regardless of when payment is made. The first priority should be to close the channels through which public money is leaking.”

Vazrazhdane Calls for Structural Reforms

Representatives of Vazrazhdane said the government's portrayal of the budget situation was overly pessimistic.

Dimo Drenchev:

“The government of Rosen Zhelyazkov and Finance Minister Temenuzhka Petkova misrepresented the true state of the budget and the deficit. Reforms should be implemented so that we return to a normal budget deficit. Looking ahead to 2027 and 2028, we should move towards balanced budgets. Personally, I am strongly opposed to increased defence spending.”

Neither Progressive Bulgaria nor Movement for Rights and Freedoms commented on the issue in parliament.