Parliamentary Vote Secures Interim Funding
On Wednesday, December 17, 2025, Bulgaria's Parliament adopted the 2025-to-2026 Budget Extension Bill on its second reading, having passed the first reading earlier the same day. The legislation ensures the continued regulation of expenditure and revenue collection for the initial three months of 2026, or until a comprehensive 2026 State Budget Act is formally adopted. This measure is designed to guarantee the uninterrupted application of the 2025 budget's financial parameters.
The bill received support from a broad coalition of parties, including GERB-UDF, Continue the Change - Democratic Bulgaria, MRF - New Beginning, There Is Such a People, and the Alliance for Rights and Freedoms, alongside two independent Members of Parliament. Opposition came from Vazrazhdane and MECh, while BSP-United Left abstained from the vote.
Government Resignation and Political Instability
The budget extension comes in the wake of significant political upheaval, marked by the resignation of the coalition government led by Prime Minister Rosen Zhelyazkov. Mr. Zhelyazkov announced his resignation on December 11, 2025, with Parliament formally approving it on December 12, 2025.
This resignation was largely a response to widespread mass anti-corruption protests and intense public pressure concerning the proposed 2026 draft budget. The initial draft, which had faced considerable opposition, was subsequently revised and ultimately withdrawn. The government, which had taken office in January 2025, succumbed to the pressure, highlighting a period of persistent political instability in Bulgaria. This marks a recurring pattern, as Bulgaria has resorted to extended budgets in previous years, including 2022, 2023, and 2025, due to similar political challenges.
Key Provisions and Future Outlook
The extended budget prioritizes the allocation of funds for essential services, ensuring the payment of salaries, pensions, and social benefits. A notable inclusion in the adopted law is a proposal for a one-off indexation of wages for public sector employees, excluding those earning the minimum wage. This indexation will be equivalent to the accumulated annual inflation as of December 31, 2025, a proposal championed by Assen Vassilev of the Continue the Change - Democratic Bulgaria coalition.
Furthermore, the implementation of the law will adhere to the currency conversion rules outlined in the Act on the Introduction of the Euro in the Republic of Bulgaria, as the country is slated to join the Eurozone on January 1, 2026. With the current political landscape, including the inability of parliamentary groups to form a new government, expectations are growing for snap elections to be held in spring 2026.
6 Comments
anubis
Why bother with elections if they just extend old budgets? Pointless exercise.
eliphas
It's good that salaries and pensions are secured, but this constant reliance on budget extensions shows a failure to govern effectively. The one-off indexation is a temporary relief, not a structural reform.
anubis
The extension is pragmatic to avoid a financial standstill, especially with Eurozone entry looming, but it also reflects a depressing cycle of political dysfunction. We're constantly reacting to crises instead of building a stable future.
eliphas
Ensuring public sector wages are indexed to inflation is a positive step for workers, but the fact that this is happening due to political turmoil rather than proactive planning is concerning. It's a reactive measure in a chaotic environment.
anubis
While extending the budget prevents immediate chaos and ensures payments, it also highlights the chronic political instability that plagues Bulgaria. We need long-term solutions, not just stopgaps.
Africa
The broad support for the extension suggests a recognition of its necessity, yet the deep divisions leading to the government's collapse remain unaddressed. This solution keeps the lights on but doesn't fix the underlying power struggles.