Balgarianovinite.com The growing deficit in the Public Social Insurance budget creates a risk to the fiscal sustainability of the social insurance system and a risk of increasing social security contributions or taxes, said Bulgaria’s Fiscal Council in an opinion in connection with a report on the implementation of the Public Social Insurance budget in 2025.
The Fiscal Council recalls that in its previous opinions it has repeatedly warned about the long-term negative impact of measures taken in recent years to increase pension incomes.
According to the opinion, the most significant effect on the size of the budget comes from the continuing trend of a substantial increase in pension expenditures. It began with a decision to pay one-off additional supplements in 2020, which was later continued in 2021, when the supplements were significantly increased. This led to a lasting and significant rise in the average pension amount. Pension expenditures in 2025 amount to BGN 24.126 billion and represent 10.6% of the country’s gross domestic product (GDP).
The implementationn of both revenues and expenditures in the social insurance budget for 2025 is slightly below 100%. The coverage of social insurance expenditures by contribution revenues increases to 54.5% (compared to 52% last year). Compared to the initial plan, there is an underperformance of contribution revenues by BGN 211 million (1.4%). At the same time, non-tax revenues show an overperformance of BGN 150 million due to the transfer of funds from individual accounts to the solidarity funds of the Public Social Isurance.
After a record 22% increase in pension expenditures in 2023, a slowdown in the growth rate has been observed – down to 13% in 2024 and 11% in 2025. Given the declining number of pensioners, this results in an increase in the average pension amount. In the structure of the Public Social Insurance expenditures, pension costs reach 88.4%, while spending on benefits and allowances amounts to 11%.
After rising by 18% last year, spending on social benefits and allowances increased by 7% in 2025 (a nominal increase of BGN 203 million). The largest share of benefit expenditures is for temporary incapacity for work (44%). The average daily benefit amount reaches BGN 61.3, which is 20% higher than last year and 8% higher than planned.
The deficit in the Public Social Insurance budget decreased to 44.5% (compared to 46.8% in 2024), but remains high compared to the 2019 level, when it was reduced to 34%. For the reporting year 2025, the Public Social Insurance budget received a transfer from the state budget amounting to BGN 12.196 billion, compared to a planned BGN 12.173 billion. During the year, additional transfers of BGN 133.7 million were approved. The transfer from the central budget last year was BGN 11.502 billion, meaning an increase of BGN 694 million in just one year, or 6%. Fiscal Council Says Growing Public Social Insurance Deficit Carries Risk of Higher Pension Contributions and Taxes 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-06-23 13:04:06 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