Government spending is rising despite higher tax revenues

The Ministry of Finance expects a budget deficit of EUR 2.5 billion on a cash basis by the end of May. The preliminary estimate has been published on the ministry’s official website. The deficit amounts to 2% of projected GDP. By comparison, as of May 2025, a deficit of EUR 1.3 billion was reported, or 1.1% of GDP.

• Fiscal Council membersays new foreign debt is inevitable in case of deficit
• European Commissionwill open excessive deficit procedure for Bulgaria on June 3

State revenues as of May 2026 are expected to reach EUR 17.3 billion, up by EUR 1.2 billion, or 7.6%, compared with the same period in 2025. Expenditures under the consolidated fiscal program as of May 2026 amount to EUR 19.9 billion. In comparison, expenditures under the consolidated fiscal program as of May 2025 stood at EUR 17.4 billion.

The increase in spending is mainly driven by social and healthcare payments, personnel costs, and capital expenditures.

Edited by Ivo Ivanov

Translated by Kostadin Atanasov