24/07/2026 Parliament adopted the state budget for 2026 at second reading

Parliament finally adopted the bill on the state budget for 2026 at second reading.

The MPs voted on the framework of the state budget for 2026 with planned revenues, expenditures and transfers and a deficit of 5.7 percent. The maximum amount of new government debt that may be incurred in 2026 is EUR 10.1 billion. This amount includes a loan of up to EUR 3.261 billion under the European Security Measures for Europe (SAFE) instrument to strengthen the defence industry.

The minimum amount of the fiscal reserve as of 31 December 2026 is EUR 2.6 billion. The maximum amount of state debt at the end of this year cannot exceed EUR 37.7 billion, Parliament adopted.

The MPs decided to develop a new mechanism for determining the minimum wage for the country, and until then it will remain at the level of 2026, i.e. EUR 620. The Council of Ministers, upon the proposal of the Deputy Prime Minister and Minister of Finance and the Minister of Labour and Social Policy, approves a bill on amendments to the regulations for determining the minimum wage for the country, and until the adoption of the changes, the minimum wage will remain at the level set for 2026, the adopted provisions state.

From 1 August 2026, the individual basic monthly salaries of all civil servants under the Civil Servant Act and the monthly wages of those employed under the Judiciary Act shall be determined so that they, reduced by the mandatory social security contributions at the expense of the insured person and the tax due, are not lower than the individual basic monthly salaries received as at 31 July 2026, reduced by the tax due, the adopted texts provide.

From 1 August, the average monthly income for receiving a one-time pregnancy allowance and monthly child-rearing allowance until the child is one year old becomes EUR 466. From the same date, the average monthly income for receiving full child benefits until the child completes secondary education, but no more than 20 years of age, is EUR 415. The average monthly income threshold for receiving child benefits at 80% of the full benefit amount is between EUR 415.01 and EUR 466, inclusive.

With changes to the Labour Code, starting 1 January next year, one day of work experience will be recognized as the time during which the worker or employee has worked the full statutory working hours for the day, Parliament finally decided. When working part-time, the length of service is calculated in proportion to the statutory working hours. One year of work experience is considered when 12 months of work experience are counted. Until 31 December 2026, the length of service and the corresponding rights under the Labour Code shall be determined according to the previous procedure.

Parliament determined that when using the tax relief for children under the Personal Income Tax Act for 2026, the amount deducted from the annual tax bases will be EUR 3,067.75 for one minor child. For two - EUR 6,135.50; for three or more minor children - EUR 9,203.25. When using the tax relief for children with disabilities under this law, the amount by which the annual tax bases are reduced is EUR 6,135.50.

The MPs decided not to apply automatism in determining the salaries of military and civilian personnel in the system. They retain their basic monthly salaries, indexed under the terms and conditions of the so-called extension law until the adoption of the state budget for 2026. The same applies to the Ministry of Interior and the National Service for Protection.

Budgetary organisations shall cease planning, spending and transferring funds from their budgets for organising, holding and financing festive, recreational and sporting events for their employees, including Christmas and New Year celebrations and other non-work-related events. The single-person state bodies, their deputies, the chairmen, deputy chairmen and members of collegial state bodies, as well as the heads of political cabinets will not receive additional remuneration for achieved results, the MPs voted.

Parliament terminated the mandate of Plamen Tonchev as Chairperson of the Commission for the Disclosure of Documents and the Announcement of Affiliation of Bulgarian Citizens with the State Security and the Intelligence Services of the Bulgarian National Armed Forces.

The National Assembly adopted at first reading a bill to amend the Renewable Energy Sources Act, with 134 votes in favour, 9 against and no abstentions. The bill was tabled by Rumyana Petrova ('Progressive Bulgaria') and a group of MPs.

The bill proposes two interrelated changes to the Renewable Energy Act and the Energy Act, aimed at implementing milestone 96 under Reform C4.R6 "Increasing electricity from renewable sources" of the Recovery and Resilience Plan (RRP), as well as reducing the administrative and regulatory burden in the implementation of investments in the energy sector.