site.btaMunicipalities Association Proposes 13% Municipal Subsidy Increase in 2026 State Budget

The National Association of Municipalities in the Republic of Bulgaria (NAMRB) has proposed a 13% increase in the subsidy for municipalities in the 2026 State Budget, the organization’s Executive Director Silvia Georgieva told BTA after the conclusion of the Annual Meeting of Local Authorities. The three-day forum, organized by NAMRB, was held in the Albena resort, on the Black Sea.

Georgieva explained that the association’s proposals have already been submitted to the Finance Ministry, with negotiations expected to take place by the end of October. She outlined three main priorities in the association’s budget proposals: the preservation of the municipal investment programme, increase in the general equalization subsidy, and a raise of salaries in municipal administrations.

Municipalities currently have around 3,300 projects under the municipal investment programme, totalling over BGN 8.2 billion, Georgieva said. The proposal to the Finance Ministry is for the programme to be preserved in next year’s budget, with sufficient resources allocated both for payments on ongoing projects and for the start of new ones. “We received assurances from both the prime minister and the finance minister that the municipal investment programme will be part of the 2026 budget. The specific figures are yet to be negotiated,” Georgieva added.

The general equalization subsidy supports municipalities with lower tax revenues, allowing them to maintain a similar quality of services as larger, wealthier municipalities. Georgieva said that this is the only state subsidy municipalities can govern independently through decisions by municipal councils. “We have requested a 13% increase in this subsidy for 2026,” she added.

Georgieva said that municipal administrative salaries are among the lowest in the public sector. For example, an EU-funded projects expert in a medium-sized municipality earns around BGN 1,200, which is close to the minimum wage. “This severely limits mayors’ ability to recruit and retain qualified professionals,” she added.

NAMRB members were extremely satisfied with the government’s participation in the annual meeting, Georgieva said. She added that during the forum, Prime Minister Rosen Zhelyazkov and the Ministers of Finance, Regional Development, Agriculture, Transport, Education, and Environment met with local authorities. “Central and local authorities had meaningful discussions. We felt heard and understood by the government representatives,” Georgieva said.

She also expressed appreciation for the central government’s understanding of the complex challenge municipalities face in implementing waste collection fee reforms. Georgieva highlighted the ongoing dialogue with Environment and Water Minister Manol Genov on transitioning to the “polluter pays” principle. NAMRB proposes a three-year transitional period, starting 2026, which would involve a phased implementation by type of activity, region, or a mixed approach. No EU country has applied the polluter pays principle nationwide all at once, Georgieva said. She added that the change is extremely costly, requiring major investments in infrastructure for weighing waste, something municipalities cannot afford on their own.

Georgieva further said that water supply remains a key issue. While multiple institutions are involved, municipalities are strongly tied to the sector, she added. Although replacing outdated water infrastructure is expensive and time-consuming, municipalities have access to investment resources. “Numerous local projects are underway, and we hope to gradually renew the underground water infrastructure to reduce water loss,” Georgieva said.