Fitch Ratings: Bulgaria’s 2026 budget highlights public finances deterioration

The 2026 budget approved by Bulgaria’s new government highlights the risks posed to the economy and public finances from fiscal easing in recent years, according to an analysis by international credit rating agency Fitch Ratings, BTA reported.

''Significant deficit reduction is envisaged for 2027-2028, but expenditure rigidities and opposition to tax increases, as evidenced by demonstrations that led to the collapse of the previous government, pose challenges to fiscal consolidation'', the experts noted.

The analysis concludes that ''broad adherence to the corrective arm of the EU’s fiscal framework could support an improvement of Bulgaria’s fiscal stance over the medium term, but may not be enough to stabilize the debt ratio''.

Edited by Ivo Ivanov

Translated by Kostadin Atanasov