In brief
Finance Minister Galab Donev addressed Sofia’s employers and unions, announcing a 2027 budget that aims to restore fiscal sustainability while preserving income‑support measures. The plan projects a 3.5 % of GDP deficit in 2027, falling to 2.4 % by 2029, and expects debt to reach 31.4 % of GDP amid EU Excessive Deficit Procedure oversight.
On 12 November 2027 in Sofia, Finance Minister Galab Donev addressed trade unions and employer organisations, outlining a 2027 draft budget that seeks fiscal sustainability while protecting income support and investment.
Donev explained that the budget incorporates measures to improve revenue collection, curb tax and social‑security contribution evasion, and reduce administrative burdens for businesses and citizens. He stated, in a call for collective effort, that "Fiscal consolidation requires efforts from all of us, which is why dialogue with you is of key importance."
The budget projects a cash‑basis deficit of 3.5 % of GDP in 2027, 3.1 % in 2028 and 2.4 % in 2029, according to the medium‑term forecast. Total revenue, grants and donations are expected to range between 35.6 % and 36.1 % of GDP over 2027‑2029, while consolidated fiscal programme expenditure is projected to fall from 43.5 % in 2026 to 39.6 % in 2027, then to 38.9 % in 2028 and 38.0 % in 2029.
Government debt is forecast to reach €44.3 billion, or 31.4 % of GDP, in 2027, with a potential new borrowing of up to €8.6 billion and a minimum fiscal reserve of €2.6 billion for the year. The draft also projects a minimum monthly wage of €660 in 2027.
Responding to the presentation, social partners outlined their positions on the state budget, the National Health Insurance Fund budget and the Public Social Security budget for 2027, underscoring the need for sustained dialogue during the Excessive Deficit Procedure overseen by the EU Council.
As Bulgaria navigates these fiscal adjustments, the Ministry notes that the planned measures align with the EU’s recommendations for stabilising public finances over the medium and long term.
