site.btaQ1 Deficit Will Be BGN 3.634 Bln, New Budget Bill to Be Submitted by Feb. 14 - Finance Minister

A deficit of BGN 3,684,378,000 is projected for the first quarter of 2025, according to Finance Minister Temenuzhka Petkova. She addressed the media during a news briefing at the Council of Ministers. She announced that the government has decided to withdraw the 2025 budget bills that the caretaker cabinet has submitted, and prepare new bills for the state budget and the budgets of the National Health Insurance Fund (NHIF) and the State Social Security (SSS) but February 14. The tax legislation package will also be pulled out.

The decision reflects the priorities of Bulgaria's new government, which seeks to align its policies with the 2025 state budget framework, explained the Finance Minister.

“We aim to propose a budget with a deficit of no more than 3% of the country’s Gross Domestic Product,” Petkova added. She also informed the cabinet about the current state of public finances, noting that the government is operating under an extended budget law.

Petkova attributed the current financial challenges to mismanagement of public funds over the past three years, emphasizing the need for fiscal discipline moving forward.

The Finance Ministry is planning to use the reserve to "ensure the normal functioning of the state until a new budget for 2025 is adopted", said also the Finance Ministry. If a decision for that is made, the government will set the exact amount to be used.

She assured the press that the money is available for social payments.

She expects "grave and serious challenges for public finances". 

Petkova said that Bulgaria covers all eurozone accession criteria minus price stability. After Eurostat put out the most recent data on January 17, Bulgaria is 0.1 percentage points below the target, which is negligible. As soon as this target is met too, the government can ask the European Commission to prepare a convergence report, the Minister also said.