site.btaMedia Review: November 3

The topic of the 2026 State Budget Bill dominates Monday’s news media.

ECONOMY

An article on Capital.bg reads that this week will be dominated by the 2026 budget. By law, it should have been submitted last Friday, but the ruling parties set a new deadline - this Friday. The reason for the delay is that the parties in the ruling majority are constantly changing some of its key parameters related to pay in certain sectors, which requires a recalculation of proposals already approved by the Joint Governance Council. At the same time, the ruling parties are deliberately releasing some of these proposals to the public with the idea of testing whether and how they are accepted by employers, trade unions, and society. The article gives as examples Socialist Dragomir Stoynev’s Sunday statement about a 5% pay rise in the budget sphere and a 5% increase of the tax on dividends, and Education Minister Krasimir Valchev’s Saturday statement that teachers’ monthly salary might be 125% of the average in Bulgaria, meaning some BGN 3,300.  

Duma quotes BSP - United Left Floor Leader Dragomir Stoynev as saying on Sunday that all salaries will increase above inflation level in the 2026 budget. According to him, salaries linked to the average wage will be maintained, with those of healthcare workers being added to them from next year. "The Swiss rule remains in place, so pensioners can also expect a significant increase in their income in the middle of the year," Stoynev added. The Socialist explained that the 2% increase in social insurance contributions will prevent raising the retirement age. "This will ensure the stability of the system and cover the deficit in the National Social Security Institute, which we all pay for through our taxes," he added. Stoynev also said that that the Joint Governance Council had agreed to increase the tax on dividends to 10%, which aims to limit the grey sector. In his words, BSP - United Left is satisfied with the 2026 draft budget. The important thing is that it does not include a reduction in income; on the contrary, the Government is pursuing a consistent and serious policy to increase it. A serious step is being taken towards restoring social justice, Stoynev commented. 

Trud’s front-page article presents the effect of the higher social insurance contributions envisaged in the draft 2026 state budget and public social insurance budget. Working middle-class people will pay around EUR 10 more per month in taxes because of the increase by 2% from January 1, 2026, and by a further 1% from the beginning of 2028. With a 2% increase in pension contributions, pension contributions for people born before December 31, 1959, will rise from 19.8% to 21.8%. For those born after December 31, 1959, contributions will increase from 14.8% to 16.8%, but they will also pay an additional 5% into a universal pension fund, unless they have opted out of the second pension. Pension contributions are split between the employee and the employer. Therefore, when contributions are raised by 2% at the beginning of next year, the contributions deducted from the employee's salary will increase by 0.88%, and the contributions paid by the employer will increase by 1.12%. At first glance, the change does not seem significant. However, in reality, it will lead to a decrease in the net salaries received by workers and an increase in labor costs for businesses.

On Bulgarian National Radio, Iliya Iliev, President of the Institute of Certified Public Accountants in Bulgaria, commented that raising pension contributions will stimulate the grey economy, because any increase in the tax and social insurance burden leads to possible income concealment. The more the tax burden is increased, the more tax collection decreases and the less money goes into the budget of each country, the expert explained, referring to the significance of the well-known Laffer Curve. The fight against the grey sector must continue, but it is important to optimize public spending, Iliev said. According to him, measures in this direction should be the same throughout the country. Stimulating economic activity is one of the things that must be done in every country, he said. In his words, when people manage their money wisely and invest it properly, this will not burden the pension system in years to come.

On Bulgarian National Television, the topic of the draft 2026 state budget - Bulgaria’s first in euro - is discussed by economist Prof. Garabed Minasyan and banker Levon Hampartzoumian. Prof. Minasyan commented that the Government violated the Public Finances Act by failing to submit the 2026 State Budget Bill by October 31. According to him, the Cabinet has also violated the requirement to submit a report on the implementation of the state budget at the end of September. "How can we allow our elected representatives – the Government and the Ministry of Finance – to do whatever they want for reasons known only to themselves?" the economist asked rhetorically. According to Hampantzoumian, Bulgaria’s membership in the eurozone will not solve the problems arising from poor financial management. "The eurozone is not an immunization against poor financial management. A series of budget deficits is poor management," he said. According to him, there may be a budget deficit in crisis situations, such as the COVID-19 pandemic or the war in Ukraine, but this cannot become a practice.

On Nova TV’s morning show, what is known about the draft 2026 state budget was analysed by entrepreneur Tanya Skrinska, financial journalist Stefan Antonov, and his colleague from the 24 Chasa daily Viktor Ivanov. According to Skrinska, even EUR 620 is a low minimum wage, even for low-skilled workers. "We know what the prices are. Every economy needs low-skilled workers, but it is important to clarify whether we have this money, where it will come from, and who will pay the bill. In this case, it will be the honest employers and employees who are employed in the official sectors," the entrepreneur emphasized. According to her, about 30% of businesses are in the grey economy. Ivanov was adamant that any tax changes must be made predictably in advance. In his words, a 2% increase in social insurance contributions is an awful lot. "We had such a case in 2011. At that time, the social insurance burden was raised by 1.8%. With BGN 330 million more in expected revenue, BGN 225 million less was collected. People stopped paying their social insurance contributions. Businesses also found it convenient to negotiate with employees and pay lower social insurance contributions. Now, the effect will definitely be the same," said the journalist. Antonov said there is a lot to be worried about. "Bulgaria is in a historic period of indebtedness – one that has not been seen since the 1980s. I have taken the trouble to examine every decade since then," the journalist warned.

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On bTV's morning show, former energy minister Alexander Nikolov commented on the effect of the US sanctions against Russia's Lukoil and Rosneft in light of Lukoil operating the oil refinery in Burgas (on the Black Sea). "The refinery in Burgas, directly or indirectly, is the largest taxpayer in the country. There is nothing more important for how the state budget will function and whether it will be in deficit or surplus than how the refinery in Bulgaria operates," he warned. "What I see as the incumbents' plan from last week is very alarming to me. Friday's parliamentary decision actually bans the export of diesel, jet fuel, and other petroleum products, and this shows several things. First, no one has any idea what the effect of such a measure will be on the budget. Second, there is no right-wing party in Parliament with a real understanding of economic processes, just as there is no right-wing opposition to explain what this decision will achieve and what its effect on the market will be," he argued. In his words, the ban on fuel exports means at least BGN 100 million less in the state budget every month. 

On Nova TV's morning show, Tsvetomir Nikolov from the Center for the Study of Democracy commented that there should be no fuel shortage because Bulgaria has guaranteed reserves for at least another three months. "Even in the worst-case scenario, it is abundantly clear that the State should step in and take control of the [Burgas] refinery. If there is no deal on Lukoil's assets by November 21, whether at the global or local level, the State will have no choice. The sooner it does so, the better, because the process would be more transparent and predictable for all citizens," Nikolov argued. Dimitar Hadzhidimitrov, expert from the Association of Bulgarian Fuel Traders, Manufacturers, Importers, and Carriers, said that in Bulgaria, 45 days' worth of reserves are kept by law, and the remaining 45 days' worth are kept in neighboring countries such as Slovenia, Hungary, and others. There are documents stating that these two countries and companies have made a commitment to Bulgaria that when needed, these fuels will be available. These are guaranteed quantities even if there is a fuel crisis in the country concerned, he explained.

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On Bulgarian National Television's morning show, Bulgarian National Bank Deputy Governor Petar Chobanov talked about changes to the Central Credit Register that will reduce credit fraud. "It is the obligation of financial institutions, whether banks or non-bank financial institutions, some of which are popular as quick loans, to submit this information to the credit register within two working days after granting a loan or changing and renegotiating a loan. This shortens the five-day period, which could potentially be used for fraud. This will greatly reduce the maneuverability of those who want to act in bad faith and use their contacts in financial institutions to obtain several loans at once, which they are then unable to repay," Chobanov explained, adding that the changes will come into force on February 1, 2026. He commented that the other direction of the changes is in relation to cases where there is a final court decision regarding a loan.

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24 Chasa’s front-page story reads that EU citizens buy impulsively when they see discounts, resulting in unnecessary purchases and food being thrown away. Most often, the products that go into the garbage bin are bread, dairy products, fresh fruit and vegetables. Eurostat data show that on average, an EU citizen throws away 130 kg of food a year. In Bulgaria, the average amount is 93 kg a year. According to Bulgarian Food Bank head Tsanka Milanova, the problem lies not only in the food industry but also in the way households look at food and realize the impact of throwing it away. The organization reports an increase in the quantity of saved food, thanks to which people at risk of poverty across Bulgaria are supported. In 2024, the Bulgarian Food Bank saved 431,600 kg of food worth BGN 2,298,702 from being thrown away and supplied 83,335 people with that food. From January to September 2025, the figures stand at 364,973 kg of food worth BGN 2,625,312 and support for 72,015 people. Compared to the like period of 2024, the weight of the saved food increased by 51%, which shows an increase in the quantity of food Bulgarians throw away.

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24 Chasa has an interview with Sofia Deputy Mayor for Ecology Nadezhda Bobcheva about the ongoing waste collection crisis in Sofia’s Lyulin and Krasno Selo boroughs. She says that the situation is improving and a contract via a quick procedure with direct contracting is about to be sighed to ensure regular waste collection. A waste collection crisis could arise in the Izgrev, Slatina, and Poduyane boroughs if Sofia City Hall fails to sign a contract with a waste collection company by December, but the situation would not be as bad because of the experience gained from the other crisis, Bobcheva said.

Mediapool.bg presents details that emerge from the documents relating to Sofia Municipality's largest public procurement contract - the one for cleaning the city over the next five years - published after the decision on three of the seven positions in the tender. Three companies that, on paper, have nothing in common, have stated that if they win part of Sofia Municipality's mega-contract for waste collection, they will use the facilities of a fourth company. Two of these companies have no formal ties to the company from which they intend to obtain the facilities. This company and its affiliates have been cleaning Sofia for years. They have also chosen the same company to provide them with some of the cleaning equipment. According to public documents, this company is engaged in the trade of sugar products. On October 28, the procedure for selecting a cleaner for the waste crisis-stricken Lyulin and Krasno Selo boroughs (zone 6), as well as Izgrev, Slatina, and Poduyane (zone 3), which are preparing for such a crisis, was terminated. Sofia Municipality decided to sign a contract for the servicing of Ilinden, Nadezhda, and Serdika boroughs with the only surviving foreign participant, the Turkish company Norm Sanayi, the e-zine recalls.

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Telegraf has an interview with Chief Health Inspector Angel Kunchev,  who talks about the flu season. He warns people not to trust antibiotics blindly. 

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Segabg.com reports that Romanian low-cost airline AnimaWings suspended its flights between Bucharest and Sofia on October 29, just a month after launching them, over lack of passengers. This was announced by Georgi Karaivanov from TAL Aviation, which represented the carrier in Bulgaria. The ambitious plan included five flights a week, excluding Saturdays and Sundays. The flights were mainly used by business travellers because of the lower prices - around EUR 75 for a one-way ticket with hand luggage. For a family of four, the cost of flying is significantly higher than travelling by car, which is why Bulgarian and Romanian tourists prefer to travel between the two countries by private transport, despite the inconvenience caused by the renovation of the Danube Bridge between Ruse and Giurgiu. This leaves Romanian national carrier TAROM as the only carrier operating flights between the airports of Sofia and Bucharest. 

POLITICS

Trud has an interview with journalist and international analyst Ognian Daskarev about last week’s visits of US President Donald Trump to several countries in Southeast Asia. The analyst comments that Trump acted with superiority  towards everyone but his Chinese counterpart. The result of that meeting was not an end to the US-China trade war but a truce that lowered the tension and benefited for the US. Trump also made deals with the other Asian countries he visited worth USD 1,140,000,000,000. The recent US sanctions against Russia’s oil companies Lukoil and Rosneft have an effect, and that is evident from Lukoil being in a hurry to sell and Trump’s response to Russia’s demonstration of nuclear power – he immediately responded with a resumption of nuclear testing. Still, the US sanctions will not make Russia sit at the table for negotiations. Trump has stopped six wars but, apparently, he cannot achieve that in Ukraine; he does not want to interfere more seriously in that war by providing powerful weapons.