Prime minister Boiko Borisov will propose to parliament to vote on changes in the cabinet which include replacing deputy prime minister and finance minister Simeon Dyankov, the government said.
Borisov will propose to the MPs that regional development minister Lilyana Pavlova succeed Dyankov as deputy prime minister, and that Tomislav Donchev, minister in charge of EU funds absorption, be appointed minister of finance and EU funds management, the government's press office said in a statement.
The government's press office provided no further details.
Daily Trud reported that Borisov had decided to dismiss Dyankov because the finance minister was firmly opposed to paying local farmers delayed EU subsidies from the state budget before mid-March. The prime minister has promised the farmers, who have threatened to hold protests in downtown Sofia, that they would get the money by February 22.
Late last week, the finance ministry said the money for the subsidies will come from the fiscal reserve and will later be reimbursed by the European Commission. The ministry consequently decided to issue 800 million levs ($545 million/409 million euro) in six-month Treasury bills on February 20, it added.
The cabinet reshuffle comes amid mass protests in big cities against high electricity bills.
This is the second change in the cabinet of the ruling centre-right party GERB in less than three weeks. At the end of January education minister Sergei Ignatov resigned after an audit established a series of violations at the Scientific Research Fund, the body which distributes EU financing for scientific projects.
Bulgaria is due to hold general elections in the summer.