Topical Information

Silvia Georgieva, Executive Director of the National Association of Municipalities in the Republic of Bulgaria (NSORB), presented the 2025 budget execution report and the draft 2026 budget at the 39th General Assembly, emphasizing the logical connection between the two documents—as an assessment of achievements and as a framework for implementing the organization’s program in the upcoming year. Notably, the 2026 budget is the first prepared in the new European currency (euros).

"The most important conclusion from the 2025 budget execution is that it confirms the trend of stable financial management, with almost full revenue collection and realized savings in expenditures," stated Georgieva.

As of December 31, 2025:

• Revenues were executed at 99%

• Expenditures at 64% of the planned amount

• Total revenue collected amounted to BGN 4.47 million, excluding the transitional balance of BGN 3.26 million

"This is a clear indicator of good planning, effective organization of activities, and prudent resource management," emphasized the Executive Director.

Key highlights in revenue:

• 98% collection of membership fees for 2025, demonstrating high engagement from member municipalities

• 138% of projected income from economic activities, driven by a highly successful Annual Local Authorities Meeting, with nearly 750 municipal representatives participating

• Dividend from the commercial company NSORB–Aktiv EOOD amounting to €230,000, to be directed to increase the reserve fund

Uncollected membership fees at year-end totaled BGN 284,000, mostly related to previous years, with ongoing communication planned with the respective municipalities.

Expenditures: Significant savings were realized due to efficient project execution and partial project funding. Two vehicles and office equipment were purchased, and higher economic activity expenses were linked to greater-than-expected participation in the Annual Meeting.

"The 2026 budget reflects a qualitatively new stage in NSORB’s development and external environment," Georgieva noted.

Key strategic elements:

• Budget prepared in euros in line with Bulgaria’s transition to the euro

• Membership fees for 2026 remain unchanged, including the 5% early payment discount valid until April 30, benefiting roughly 240 municipalities annually

• Planned purchase of a new NSORB office building, a long-term investment to improve working conditions and ensure sustainable development

  • Financing will combine a bank investment loan, own funds, and a VAT credit line, with negotiations ongoing with multiple banks for optimal terms

2026 Financials:

• Planned revenues: €11.63 million, with a significant portion from the transitional balance and credit financing for the investment

• Planned expenditures: €11.20 million, structured into eight clearly defined groups covering statutory activities, international engagement, 30th-anniversary initiatives, and the necessary reserve fund

• Dividend from NSORB–Aktiv EOOD to be directed to the reserve fund to strengthen financial stability

The leadership also proposed maintaining membership fee levels for 2027, which since 2014 are calculated as a percentage of municipal budgets:

• Municipalities with budgets up to €51.13 million (BGN 100 million): 0.029% of the annual budget report for 2025

• Municipalities with budgets above €51.13 million: 0.022% of the annual budget report for 2025

"With the presented report and draft budget, we lay the foundation for financial stability, predictability, and strategic development of NSORB in the coming years," concluded Silvia Georgieva.