Bulgaria’s Parliament Backs Extended Budget as WCC-DB Pushes Inflation-Linked Salary Indexation

The National Assembly has adopted at first reading the so called “extended” state budget, following what several parties described earlier in the day as a "political test" by GERB and TISP.

Further reading: Bulgaria: Ruling Coalition Tried Again to Pass Controversial 2026 Budget, Opposition Calls for New Protest Tomorrow

With the vote, MPs approved the continued collection of revenues and execution of expenditures in 2026 until the formal adoption of the State Budget Act for 2026, as well as the budgets of State Social Security and the National Health Insurance Fund for the same year. The draft extension law was officially submitted to parliament on December 15.

Presenting the proposal, outgoing Finance Minister Temenuzhka Petkova said the measure ensures the uninterrupted application of the parameters of the 2025 budget until a new budget for 2026 is passed. According to the Council of Ministers, the aim is to secure a stable legal and financial framework for the normal functioning of state institutions and local authorities, with a clear focus on guaranteeing funds for salaries, pensions and social payments.

The bill passed its first reading without any debate in the plenary hall.

After the vote, National Assembly Speaker Raya Nazaryan announced a one hour recess. She cited a ruling by the Constitutional Court earlier this year, which requires a minimum 60 minute interval between the first and second readings of a bill adopted on the same day, allowing MPs time for consideration.

Following the decision, “We Continue the Change-Democratic Bulgaria” (WCC-DB) announced plans to propose amendments to the extended budget for 2025, aimed at indexing salaries to inflation.

“We are proposing a one time indexation for everyone who is not on the minimum wage, equal to the accumulated annual inflation as of December 31. This is fully within the budget’s capacity, as revenues and the economy grow alongside inflation. The exact percentage will depend on the inflation data published by the National Statistical Institute in early January,” WCC-DB leader Asen Vassilev said.

DB economist Martin Dimitrov added that fears of scenarios similar to those seen in Romania and Greece had been avoided.

Earlier in the day, MPs also extended the parliament’s agenda until the adoption of a draft declaration condemning an act of hate motivated violence against a journalist and representative of the Bulgarian community in North Macedonia. The declaration was signed by TISP, GERB, BSP and Revival.