Bulgaria’s Government Approves Transitional Budget to Maintain State Stability

Prime Minister Rosen Zhelyazkov announced that the government is moving forward with an extension budget to ensure the continuity and stability of state operations and social spending until the formal 2026 budget is adopted. Speaking at the start of the cabinet meeting, Zhelyazkov described the proposed legislation as transitional, intended to provide the legal and financial framework required for the smooth functioning of the state and municipalities while prioritizing payments such as salaries, pensions, and social benefits.

The draft law, formally titled the Decision on Approving the Draft Law on the Collection of Revenues and the Execution of Expenditures in 2026, will maintain the 2025 budget framework until the 2026 budget for the Republic of Bulgaria, the State Social Security Budget, and the National Health Insurance Fund is passed. Zhelyazkov emphasized that the extension budget guarantees the uninterrupted operation of government programs and financial stability for citizens during the transition period.

“The purpose of this bill is to establish a secure legal and financial framework for the functioning of the state and municipalities, with particular attention to salaries, pensions, and social payments,” Zhelyazkov said, stressing the government’s responsibility to maintain economic and social stability. He noted that the measure provides legal and financial certainty, giving the National Assembly time in 2026 to form the necessary parliamentary majority to adopt the full budget.

By adopting this extension budget, the outgoing government seeks to ensure that critical state functions continue without disruption, particularly essential social programs. The Prime Minister reiterated that the bill is a responsible step to protect public finances, safeguard social spending, and maintain the day-to-day operations of the state until the new 2026 budgets are finalized.

For context, the 2025 state budget included allocations for salaries, pensions, and social payments totaling roughly 60 billion BGN, equivalent to around €30.6 billion. The extension budget will continue these allocations under the same framework, ensuring that citizens receive their due payments without interruption while the National Assembly establishes a new budgetary majority.