site.bta2025 Budget Likely to Be Bulgaria's Last in Leva, Says Finance Minister

The 2025 State Budget Bill is feasible and will likely be the last one in Bulgarian leva, Finance Minister Temenuzhka Petkova said in a bTV talk show on Sunday.

The Budget Bill has been drafted on the basis of effective legislation. All laws related to pay rises in the security sector had come into force before the budget was proposed, Petkova said.

She stressed that GERB, which co-sponsored the proposal, believes that employees ensuring citizens' safety and security should receive worthy salaries. Base salaries in the Interior Ministry, the Defence Ministry and the entire security sector are based on the average wage published by the National Statistical Institute, which reflects the average wage for the second quarter of the previous year. It serves as the basis for salary calculations across most of the public sector.

The 2025 State Budget Bill was prepared without provisions for higher or new taxes, Petkova said.

"There is a budget shortfall, and we have taken all the necessary measures to close this gap by maximizing revenue collection and cracking down on the shadow economy, where we see significant potential for boosting revenues," she commented.

VAT revenues are projected to increase by 33%, or BGN 6.3 billion. Of this growth, BGN 2.35 billion is due to macroeconomic factors and BGN 3.92 billion to government measures. Petkova stressed that these measures were proposed by the National Revenue Agency and the Customs Agency and were evaluated by experts.

She called for broad political support for the Budget Bill, urging Continue the Change - Democratic Bulgaria to back it, as it meets their key conditions: a budget deficit below 3% and expenditures not exceeding 40% of GDP.

The debt cap for 2025 is set at BGN 18.9 billion, intended for repaying maturing government debt from previous years and financing of the budget deficit.

The energy sector is a key priority and requires capitalization to implement major projects such as the construction of Units 7 and 8 of the Kozloduy Nuclear Power Plant and the Vertical Gas Corridor.

The Finance Minister reaffirmed the goal of introducing the euro in Bulgaria from January 1, 2026. The regulatory authorities will work to prevent speculative price hikes and to minimize risks associated with the changeover. A large-scale information campaign on the adoption of the euro will be launched in March.

Regarding the Recovery and Resilience Plan, Petkova said intensive negotiations with the European Commission are underway. Bulgaria must come up with a revised plan with realistic reforms and projects in an exceptionally short period. The revised proposal should be ready by April 10.