Bulgaria’s 2026 Budget Reminiscent of the 'Last Years of Communism'

Journalist Stefan Antonov has described Bulgaria’s Draft Budget for 2026 as reminiscent of the final years of communism, warning that the country risks repeating the errors of an era defined by unchecked spending and political short-termism. In his view, the budget is less about conservative fiscal management and more about political rivalry for populist approval, exacerbating structural weaknesses in the economy.

Antonov emphasized that this is not a pre-election strategy, but a symptom of a deeper, persistent problem in government decision-making. "This budget is not a hidden pre-election tool. It reflects each party’s drive not to fall behind in populist competition," he told the Bulgarian National Radio, citing a Macedonian saying: “Cursed be he who first started.” He traced the origins of this approach to 2022, when pension increases for the elderly, though socially welcomed, were introduced without supporting revenue streams in the social security system.

According to Antonov, once the link between sustainable revenues and expenditure is broken, the pattern spreads across multiple sectors. Teacher salaries, security wages, and healthcare salaries have all been increased as part of a chain reaction driven by populist pressures rather than strategic reforms. He warned that the 2026 budget would deepen social stratification, creating “privileged castes” in the public sector with high incomes insulated from market accountability, funded at the expense of the broader economy.

Antonov further cautioned that policymakers are relying on uncertain economic growth to cover these imbalances, a strategy that risks rapidly accumulating debt. Since 2022, Bulgaria’s national debt has tripled both in nominal terms and relative to GDP, he noted, describing the current fiscal trajectory as unsustainable and leading the country toward an inevitable crisis.