Bulgaria’s finance Ministry unveiled its draft 2026 state budget late wednesday,initiating a critical period of review and debate as the nation prepares for its financial future. The proposed budget represents a notable adjustment from earlier plans, with key concessions made following negotiations with labor and employer groups [[1]], [[2]]. These changes – including the shelving of planned tax hikes and a commitment to public sector wage increases – will now be discussed by the Tripartite Cooperation Council and ultimately voted on by the National Assembly [[3]].
Bulgaria’s Finance Ministry released the draft 2026 state budget and an updated medium-term budget forecast for 2026-2028 late Wednesday, just before midnight. The proposed budget includes several key changes from previous plans, signaling a shift in economic policy.
According to the newly released proposal, planned increases to the dividend tax – from 5% to 10% – have been scrapped. A previously scheduled 2 percentage point increase to social security contributions, set to take effect January 1, 2026, will also not move forward. Additionally, the requirement for businesses to use the SUPTO sales management software system has been eliminated.
The government, labor unions, and employer organizations have reached an agreement to raise salaries in the public sector by 10%. The maximum social security income will be set at 2,300 euros.
A session of the Tripartite Cooperation Council is scheduled for Monday to discuss the budget plan, which will then be submitted for consideration by the National Assembly. The changes reflect ongoing negotiations between key stakeholders as the country prepares its financial roadmap for the coming years.
You can view the full draft budget here.
