Balgarianovinite.com Bulgaria’s fiscal position remains sustainable, and joining the Eurozone on January 1 is an important institutional and economic success but, political instability, delays in the formation of the 2026 budget framework and ongoing geopolitical crises pose significant risks to the medium-term fiscal outlook, the Fiscal Council says in an Annual Progress Report for 2026 on the implementation of the National Medium-Term Fiscal and Structural Plan for the period 2025-2028. The report was published by the Fiscal Council on Tuesday.
The Fiscal Council’s report also states that adherence to the parameters of the fiscal path, which should be considered as the maximum allowable level of budget expenditures, does not in itself provide the necessary and sufficient conditions for achieving macroeconomic balance. They therefore believe that domestic budgetary targets and constraints should be more ambitious to ensure the sustainability of public finances and limit economic imbalances.
In this context, the Fiscal Council emphasizes that the formation of a regular government and the adoption of a realistic, disciplined and sustainable budget are of key importance for maintaining market confidence, limiting fiscal risks and continuing the positive economic trajectory.
The Council makes five recommendations to the new regular cabinet.
First is an urgent need to update the medium-term budget forecast and adopt a regular budget for 2026, ensuring compliance with fiscal rules. Secondly, the importance of accelerated implementation of structural reforms aimed at increasing potential growth and productivity is emphasized. Thirdly, the Council recommends strengthening fiscal discipline in public spending, including defense spending, and avoiding the accumulation of deficits. The fourth recommendation is to strengthen monitoring of the structure and sustainability of the debt and current account. The fifth and final recommendation is to review and reformulate the budgetary targets and the fiscal framework in a more ambitious direction, so as to ensure higher sustainability, adequate buffers and effective containment of macroeconomic imbalances.
Regarding the size of the structural buffer, set in the legislation at 1.5% of GDP, the Council states in its opinion that the crises since 2009 have clearly shown that their impact on the budget can vary significantly depending on the scale of external shocks, reaching up to 9% of GDP in certain cases. The Council states that, in view of the sustained budgetary deviations and the growing external uncertainty, a more realistic structural buffer for Bulgaria should be in the range of 3.5% to 4% of GDP.
Regarding the debt, the Fiscal Council points out that although “its level remains significantly below the reference value of 60% of GDP, the growth rate deserves attention. The increase is mainly related to the need to finance the budget deficit, as well as the capitalization of public enterprises”. They therefore expect the debt trajectory to remain sustainable in the medium term but also emphasize the need for careful management of new debt, including in the event of additional borrowing under the SAFE defense instrument. Public debt is expected to reach 29.9% of GDP in 2025, up from 23.8%. Fiscal Council Says Bulgaria’s Fiscal Position Is Sustainable, Sees Significant Risks to Medium-Term Outlook 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-05-12 09:54:54 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law