Budget deficit could fall below 3% as early as 2027

Simeon Djankov, Chairman of the Fiscal Council and former Minister of Finance, told BNT that it was possible for the state budget deficit to drop below 3% in 2027. According to him, this could be the "good news from the accounting tricks" employed by the "Zhelyazkov" cabinet in 2025 to reduce the deficit and pave the way for the country's entry into the Eurozone.

He noted that it is entirely possible for expenses from 2025 to have been shifted to the subsequent budget, citing other countries that engaged in similar maneuvers when facing fiscal difficulties. The financier recalled that an official deficit of 2.9% was announced at the time, but the data provided by the government prior to Eurozone accession "was not accurate." He believes the actual budget deficit for the previous year might have been as high as 5% before the expense shifting, which was achieved through deferred payments to road construction companies.

Editor: Ivo Ivanov