“The tax and social security burden will not increase.” This was stated by Prime Minister Rosen Zhelyazkov, as reported by BGNES.

The Prime Minister commented on the interview given by the Chairman of the Fiscal Council, Simeon Dyankov, to BGNES, in which he suggested considering an increase in VAT and certain other taxes in order to cover the budget deficit.

“If the government had intended to increase the tax and social security burden, it would have stated this clearly and categorically—through cabinet acts, through official communication, through proposals to the legislature, and finally through the budget law for next year,” said the prime minister.

Zhelyazkov emphasized that the government will continue to work toward financial discipline and a balanced budget.

In an exclusive interview with BGNES, former finance minister and current chairman of the Fiscal Council Simeon Dyankov predicted a higher budget deficit this year. He pointed out that the policy of accumulating deficits began with Asen Vasilev's first term in the Ministry of Finance. Today, this policy is driven by higher spending on public administration and defense.

To cope with the deficits, Dyankov suggests considering tax increases. He sees a possible increase in VAT from 20% to 22% as the mildest measure. At the same time, he is categorically opposed to a possible increase in the tax and social security burden by a total of 3% in 2026 and 2027, because this would be a blow to business.

"In general, tax increases will be a difficult and contentious issue, if they even reach parliament. In September and early October, the Fiscal Council will present several analyses to the Ministry of Finance, the Council of Ministers, and parliament. We will say, this is what is being done in other countries. If Bulgaria does the same as other European countries, this is how much additional revenue will be generated. Decide whether you can do it," says Simeon Dyankov. І BGNES