BULGARIAN INDUSTRIAL ASSOCIATION SETS CONDITIONS FOR SUPPORTING BULGARIA'S 2026 STATE, HEALTH AND SOCIAL INSURANCE BUDGETS
The Bulgarian Industrial Association (BIA) submitted its position on the draft budgets of the National Health Insurance Fund for 2026, the Public Social Insurance Fund for 2026 and the State Budget for 2026 to the National Council for Tripartite Cooperation (NCTC) on Monday.
The BIA expresses support in principle for the proposed draft bills under certain conditions. It calls for the following measures to be taken during the budget procedure: postponing the increase in the maximum insurable income until the adoption of the regular 2027 state budget; limiting the increase in the minimum insurable income thresholds to the level of the minimum wage for 2026; making the necessary efforts to reduce the projected budget deficit and reviewing the planned level of public debt for the 2026–2028 period, both in absolute terms and as a share of GDP.
The BIA notes in its statement that the State’s finances are currently managed under the so-called budget extension law and that the three proposed budgets will be in effect for only five calendar months, while the formulation of sustainable policies capable of bringing about systemic change requires time, including time for functional and structural analysis.
The Association expresses serious concern regarding the projected budget deficit and external debt, as well as the consolidated fiscal programme expenditures, which continue to consistently exceed 40% of GDP.
The BIA does not support the proposal to increase the minimum and maximum social security income thresholds effective August 1, 2026. The Association proposes discussing a phased transition from the current detailed system of minimum insurable income thresholds based on economic activity and occupational qualification groups to a model under which social security contributions for employees would be calculated on the basis of gross monthly remuneration received or accrued but unpaid, not lower than the national minimum wage for 2026, adjusted proportionally to the time worked, and would not exceed the maximum insurable income threshold.
