Sofia’s municipal council voted to adopt the city’s 2026 budget on Thursday, securing a rare coalition of the centre‑right GERB party and the socialist BSP. The approval clears the way for over €300 million earmarked for new infrastructure and development projects, while also projecting a €25 million increase in revenue from 2027 tax‑valuation adjustments.
Budget Highlights
The council’s decision, reported by fakti.bg, earmarks more than €300 million for investments in transport, housing, and public utilities. These funds are intended to modernise Sofia’s aging infrastructure and support the city’s growth trajectory, which has outpaced many regional capitals.
“Over 300 million euros for investments. Sofia Municipal Council adopted the budget of Sofia for this year.” – faktibg
Revenue forecasts were bolstered by a separate report from Novinite.com, which expects the city to collect an additional €25 million in 2027 thanks to revised property tax valuations. The extra income is slated for the city’s debt‑service obligations and to supplement the capital‑spending programme.
Economic and Service Challenges
The budget arrives as the European Bank for Reconstruction and Development (EBRD) projects a 2.7% economic growth rate for Bulgaria in 2026, according to The Sofia Globe. The modest expansion is expected to sustain municipal revenues but also places pressure on local authorities to deliver services efficiently.
One area of concern highlighted by the national ombudsman is the city’s water supply. fakti.bg reported a 35% rise in complaints about water‑service disruptions compared with the previous year, underscoring a growing public‑service gap that the new budget must address.
Politically, the joint endorsement by GERB and BSP reflects a pragmatic approach to municipal governance in the capital. GERB, the party of current prime minister and former Sofia mayor, traditionally dominates local politics, while BSP, the main opposition, has often criticised the city’s spending priorities. Their cooperation suggests a shared interest in stabilising Sofia’s finances ahead of the national parliamentary elections slated for next year.
Analysts note that the budget’s emphasis on capital projects aligns with the government’s broader agenda to attract foreign investment and improve EU cohesion funds absorption. However, the surge in water‑supply grievances could become a flashpoint if service improvements lag behind spending commitments.
Overall, the 2026 budget marks a significant fiscal step for Bulgaria’s largest city, combining cross‑party political backing with an ambitious investment plan, while also confronting pressing service delivery challenges that will test the administration’s capacity to translate funds into tangible outcomes.
