site.btaUPDATED Yes, Bulgaria Party Describes 2026 Draft Budget as Worst Since Zhan Videnov Era

Yes, Bulgaria Co-Chair Ivaylo Mirchev described the draft budget as the worst since the Zhan Videnov era, calling it an economic tsunami and a direct threat to businesses. "We will oppose such a budget in Parliament," he added, speaking to journalists on Tuesday. Yes, Bulgaria is part of the Continue the Change - Democratic Bulgaria (CC-DB) parliamentary coalition. 

CC-DB MP Martin Dimitrov noted that the proposed measures will drive the country into a debt spiral. He commented that GERB have abandoned being a right-wing party. Yes, Bulgaria said that the left-minded are declaring war on the middle class, citizens, and businesses. Dimitrov added that the government lied when it said there would be no tax increases, pointing to a proposed doubling of the dividend tax from 5% to 10%, which, in his words, will drown entrepreneurs and boost the grey economy. The pension contribution rate is also set to increase by two percentage points, he noted.

On Monday, the Finance Ministry published the draft 2026 state budget and the updated medium-term budget forecast for the 2026–2028 period. Under the draft, the consolidated fiscal programme (CFP) deficit is set at 3% of GDP for 2026, with the same level maintained for 2027 and 2028. At this deficit level, revenues, grants, and donations under the CFP are expected to reach 42.8% of GDP in 2026 and 40.5% in both 2027 and 2028. The increase from the projected 39.6% for 2025 is mainly due to new revenue measures and the delayed effect of policies adopted in 2025 following the later approval of the 2025 State Budget.

The maximum amount of new government debt that may be assumed in 2026 under the Government Debt Act is set at EUR 10.4 billion. This includes up to EUR 3.261 billion in loans under the Security Assistance for Europe (SAFE) instrument to strengthen the European defence industry.

According to Dimitrov, this government is united by wastefulness. "They have to spend a lot in order to stay together, which is why they reject all right-wing measures," the MP said. "We proposed around 30-40 reform-oriented actions, but we see none of them being implemented, only pressure on businesses," Yes, Bulgaria representatives stated.

Yes, Bulgaria Co-Chair Bozhidar Bozhanov noted that a controversial measure, abolished back in 2020, is being reintroduced - the obligation for all commercial outlets to use only state-approved software, and without giving businesses any time to adapt, as it takes effect on January 1, 2026. Instead of state officials and the Supreme Judicial Council paying their own social security contributions, this burden will be shifted onto businesses and workers in the real sector, the party warned. "The clear position is that the best deficit is zero," said Ivaylo Mirchev. He added that Bulgaria is now on track to follow Romania’s path, "but while our neighbor got there slowly, we are heading toward it within three to four years, and then we will be forced to return to the winter of 1997, when we had to make severe spending cuts".