Bulgaria’s 2027 Budget Plan Targets a 4.3% Deficit

Bulgaria’s Ministry of Finance sent its 2027 draft budgetary plan to the European Commission and the Eurogroup on 15 October, with a general government deficit target of 4.3% of GDP, BTA reported. It is the country’s first budgetary plan as a member of the euro area, which Bulgaria joined on 1 January 2026.

For 2026, the ministry now expects a deficit of about 5% of GDP, against 5.4% in this year’s state budget. The EU Council opened an excessive deficit procedure for Bulgaria on 10 July 2026, and the plan aims to correct the deficit by 2029.

No increases in the main taxes are planned, Radio Bulgaria reported. The measures for business include a one-off contribution on windfall profits in selected sectors in 2027, expected to raise about €800 million, mandatory VAT registration for supplies of land and buildings, a higher threshold for mandatory VAT registration and an excise duty on motor vehicles. Gambling operators face higher fees and taxes, including a minimum monthly threshold of €100,000 in the state fee for online operators.

From 1 January 2027, the maximum insurable income for social security contributions is planned to rise to €2,400. Pensions are set to rise by about 8%, public-sector wages by 5% and teachers’ salaries by 7.5%.

Government debt is projected at €47.1 billion at the end of 2027, or about 33.3% of GDP, up from about 31.1% at the end of 2026. The figures come from the draft plan.