The 2027 budget cuts spending and the deficit. New government borrowing will be smaller than in 2025 and 2026, Prime Minister Rumen Radev said at the start of today's cabinet meeting.
The government must now decide whether to send the budget plan to the European Commission and the Eurogroup.
Radev said the budget decisions followed careful and tense work. The plan has more support for families and children, more money for health, education and defence, and steps to boost investment and business.
The prime minister said the parties in parliament agree on higher defence spending because of the difficult security situation.
The government's priorities are to repair public finances, give more help to families, put more money into education, health, sport and culture, and increase investment and ease the burden on business.
Radev also reminded people of the state in which the cabinet found the treasury. "You know very well what state we found the state treasury in – emptied, with an excessive deficit, inherited debts, a number of projects, bills and invoices that we had to pay and are still paying, automatic pay mechanisms in the public sector and rapidly growing social and other spending," he said.
Updated (14.10, 14:09): The budget raises public sector pay by 5%, teachers' pay by 7.5% and pensions by 8%. The minimum wage will also go up. Vouchers rise from €100 to €200, but amounts above €100 will be taxed. The budget also cuts eco-taxes.