site.btaCabinet Adopts Bulgaria's 2024-2047 Convergence Programme

The caretaker Cabinet on Friday adopted Bulgaria's Convergence Programme for the 2024-2027 period.

The programme is adopted annually, based on the rules of the EU Stability and Growth Pact (SGP).

This year's Convergence Programme is the last one because, under amendments to the Pact that are expected to enter into force in May 2024, the Convergence Programme and the National Reform Programme will be replaced by a medium-term fiscal structural plan, covering a period of four or seven years, which Member States must submit to the European Commission annually.

The Convergence Programme of the Republic of Bulgaria (2024-2027) reflects the fiscal effects on the parameters of the budgetary framework under a no-policy-change scenario. This scenario has been chosen as a result of the governance of a caretaker cabinet which is not supposed to determine policy developments in the medium term.

The medium- and long-term sustainability of public finances remains a policy priority, including in terms of strengthening credibility and creating a predictable investment and business environment.

In 2024, the general government balance is expected to be negative at 3% of GDP, and the sector is projected to run deficits of 3% of GDP in 2025, 2.8% of GDP in 2026, and 3% of GDP in 2027.

Based on the planned debt financing and GDP projections, the general government debt is projected to increase over the next three years both in nominal terms and as a ratio of the sector's consolidated debt to GDP, but nevertheless to remain well below the maximum permissible Maastricht benchmark of 60%.

In the context of preserving macroeconomic stability and participating in European Exchange Rate Mechanism II, Bulgaria guarantees that it will maintain the currency board arrangement at the existing peg of BGN 1.95583 to EUR 1 until the country joins the euro area.

The Convergence Programme has been prepared by the Ministry of Finance in close cooperation and coordination with the competent ministries and central-government departments.