Bulgaria's Radev to send 2027 budget plan to Brussels, pensions to rise 8%

Bulgaria's Council of Ministers on Wednesday considered sending the country's 2027 budget plan to the European Commission and the Eurogroup. Opening the session, Prime Minister Rumen Radev said the budget would cap spending, narrow the deficit and reduce new borrowing compared with 2025 and 2026. "As I promised, we will present it on time," Radev said, according to public broadcaster BNT.

Radev said pensions would rise by 8%, public-sector wages by 5% and teachers' pay by 7.5%, the daily Trud reported. More money is earmarked for families, health, education and defense, while core taxes and VAT will remain unchanged. Banks, insurers, retail chains and telecoms will make a one-off contribution in 2027, he said.

In September, the Finance Ministry proposed a one-off 33% tax on windfall profits for 2027. Radev accused the previous government of leaving an "emptied" treasury with an excessive deficit. The outcome of the cabinet vote was not immediately announced.