In brief
At a meeting in Sofia on 12 November 2027, Finance Minister Galab Donev unveiled the draft 2027 budget, which targets a 3.5 % of GDP deficit and aims to slide debt to 31.4 % of GDP by year’s end. The plan focuses on improved revenue collection, anti‑tax evasion measures, and reduced administrative costs, while maintaining income support and investment. Bulgaria remains under the EU’s Excessive Deficit Procedure, adding pressure to the fiscal consolidation effort.
On Thursday, 12 November 2027, Finance Minister Galab Donev addressed a gathering of employer associations and trade unions in Sofia, announcing the government’s draft 2027 budget designed to restore fiscal sustainability while safeguarding income support and investment. The emergency meeting followed the unions’ presentation of their positions on the proposed state budget as well as the budgets of the National Health Insurance Fund and the Public Social Security for the year.
In his opening remarks, Donev stressed the importance of dialogue with social partners.
"To achieve this, the budget provides for measures to improve revenue collection, prevent tax and social security contribution evasion and non‑payment, and reduce the administrative burden and costs for businesses and citizens. Fiscal consolidation requires efforts from all of us, which is why dialogue with you is of key importance,"he said, highlighting the role of both employers and unions in supporting the consolidation path.
The minister explained that the 2027 budget is a “budget of responsibility”, reflecting the government’s determination to address the inherited state of public finances and accumulated imbalances. He added,
"Our overriding task is to ensure fiscal sustainability in the medium term,"pointing to the EU Council’s intensified Excessive Deficit Procedure against Bulgaria.
Key Budget Parameters
Donev presented the projected macro‑economic figures in a detailed table. The draft budget projects a cash‑basis fiscal deficit of 3.5 % of GDP in 2027, narrowing to 3.1 % in 2028 and 2.4 % in 2029, according to the medium‑term forecast. Total revenue, grants and donations under the Consolidated Fiscal Programme are expected to range between 35.6 % and 36.1 % of GDP over the 2027‑2029 period.
Government expenditure is projected to fall from 43.5 % of GDP in 2026 to 39.6 % in 2027, then to 38.9 % in 2028 and 38 % in 2029. This reduction, the minister said, will be achieved through a mix of targeted spending cuts and increased efficiency gains.
Debt dynamics are also on the agenda. Government debt is expected to reach EUR 44.3 billion, or 31.4 % of GDP, in 2027. The budget allows for new borrowing of up to EUR 8.6 billion, while a minimum fiscal reserve of EUR 2.6 billion is set at the end of the year.
Social policy components of the plan include maintaining the minimum monthly wage at EUR 660 in 2027 and sustaining investment in public projects. The finance ministry presented these elements as part of an effort to balance fiscal consolidation with the protection of social welfare.
While detailed negotiations with the unions are ongoing, Donev emphasized that the measures require collective effort. He reiterated the government’s commitment:
"Fiscal consolidation requires efforts from all of us, which is why dialogue with you is of key importance,"a point he repeated as the meeting concluded.
The meeting underscored Bulgaria’s continued engagement with the EU’s fiscal oversight mechanisms. By aligning the new budget framework with the Excessive Deficit Procedure’s recommendations for stabilising public finances in the medium and long term, the government aims to demonstrate adherence while preserving essential income support.
As the draft budget moves toward formal adoption, the social partners will review the proposed measures, particularly those affecting tax collection and public sector costs. The outcome of these discussions will shape the final 2027 fiscal blueprint and set the trajectory for Bulgaria’s economic recovery in the coming years.
