During parliamentary question time on Friday, Finance Minister Galab Donev said that Bulgaria’s 2026 budget deficit is expected to remain within the planned target of 5.7% of GDP, with the fifth payment under the National Recovery and Resilience Plan (NRRP) not expected to affect the projected deficit. The question was put forward by Continue the Change MP Nikolay Denkov.
Denkov asked whether the fifth NRRP payment, amounting to more than EUR 1.8 billion, would reduce the projected deficit for 2026. He expressed doubts about the accuracy of the forecast, arguing that a deficit of around 4% of GDP would be more realistic. He also asked what the consequences would be for Bulgaria and for Donev personally if the budget deficit target proved to be incorrect.
Donev said preliminary data showed that the budget deficit stood at 2.8% of GDP at the end of September. He noted that a substantial volume of expenditure traditionally occurs in the final quarter of the year, including social payments, capital expenditure, road maintenance and other costs.
The Minister stressed that the fifth NRRP payment was expected at the end of the year and had already been factored into the budget. Therefore, the deficit was expected to remain within the planned target of 5.7% of GDP.
Donev added that expenditure under NRRP projects and the Municipal Investment Programme was also putting pressure on the spending side of the budget.
“This year’s deficit is record high, and it is the result of policies pursued over many years,” Donev said, adding that social payments and staff costs were among the main factors behind the projected deficit.
In response to a question from Democratic Bulgaria MP Ivaylo Mirchev, the Minister said the planned deficit of 5.7% of GDP reflected the actual state of public finances as a result of the “unwise policies” adopted over the years.
Donev noted that EUR 1.1 billion was earmarked for disbursement this year under the Municipal Investment Programme and EUR 3.8 billion under the NRRP.
Donev also recalled the BGN 1 billion in advance tax payments made by banks and the advance interim dividend paid by state-owned enterprises, and stressed that these had affected public finances in 2026 and would continue to do so over the next two years.
The Minister added that contracts were still to be signed with construction companies for commissioned work involving routine road repairs and maintenance, road infrastructure and winter road maintenance. These expenses would amount to an additional EUR 450 million on top of the expenditure underlying the planned deficit of 5.7% of GDP.
2026 Budget Deficit Expected to Stay within 5.7% Target, Finance Minister Says THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-02 09:12:09
Latest news World news Country news Most important news latest news most important latest of the day Economic news Bulgaria, Bulgarian economy news, Bulgaria economic news, latest economic news, breaking economic news, Bulgarian business news, Bulgaria business news. Bulgarian financial news, Bulgaria finance news, Bulgarian markets, Bulgaria stock market, Bulgarian banking sector, Bulgarian investments, foreign investment Bulgaria. Bulgaria inflation, Bulgaria GDP, Bulgarian exports, Bulgarian imports, Bulgaria trade, Bulgarian industry, Bulgarian companies, Bulgarian entrepreneurs. Bulgarian business economy, economic growth Bulgaria, Bulgaria economic policy, Bulgarian fiscal policy, Bulgarian monetary policy, Bulgaria budget, Bulgarian public finances. Bulgaria wages, Bulgarian employment, Bulgaria unemployment, Bulgarian labor market, Bulgaria salaries, Bulgarian taxes, Bulgaria taxation, Bulgaria energy market. Bulgaria real estate market, Bulgarian property market, Bulgaria construction sector, Bulgarian tourism economy, Bulgaria agriculture economy, Bulgarian manufacturing, Bulgaria technology sector. Bulgarian startups, Bulgaria investment news, Bulgaria corporate news, Bulgarian financial markets, Bulgaria interest rates, Bulgarian banks, Bulgaria euro adoption, Bulgaria economic reforms.
BULGARIA NEWS – NEWS AGENCY 2009–2026 2026-10-02 09:12:09
