The government proposes an extension law for the 2026 budget.

The Council of Ministers proposes that the National Assembly approve a draft Law on the collection of revenues and the execution of expenditures in 2026, to remain in effect until the adoption of the Law on the State Budget of the Republic of Bulgaria for 2026, the Law on the State Social Security Budget for 2026, and the Law on the National Health Insurance Fund Budget for 2026. This was announced by the government press office following a meeting of the outgoing cabinet.

In the absence of an adopted state budget at the beginning of the fiscal year, the provision of Art. 87 of the Public Finance Act regulates key issues related to revenue collection, expenditure execution, the provision of transfers, and the assumption of state debt. It takes into account the acts of the National Assembly and the Council of Ministers that have entered into force, providing for an increase or decrease in budget funds, while simultaneously complying with fiscal rules and the fiscal targets approved in the medium-term budget forecast.

The proposed bill aims to create a legal framework that guarantees the normal functioning of the state and municipalities, as well as to protect the rights and legal interests of citizens. It provides legal certainty regarding the payment of salaries, pensions, social benefits, and other social payments, the use of tax preferences and reliefs, as well as the execution of other due payments, according to the Council of Ministers.

As a reminder, the so-called “budget extension law” means that from the beginning of 2026, the National Health Insurance Fund will be able to spend up to 1/12 of the funds it had available in 2025 on a monthly basis until the new budget is adopted. The draft budget for the health fund for next year included revenues and transfers amounting to €5,288,595.5 thousand, representing a 9.2% increase compared to those provided for the current year. Funds for health insurance payments were planned at €4,920,907.2 thousand—€383,765.0 thousand more than the NHIF budget for 2025, or an 8.5% growth.

Source: Council of Ministers