site.btaBulgaria’s Budget Deficit Reaches 2.98% of GDP at End-October, Finance Ministry Reports

Bulgaria’s budget deficit reached BGN 6.59 billion, or 2.98% of the projected gross domestic product (GDP), at the end of October 2025, the Ministry of Finance said here on Monday. The negative balance under the Consolidated Fiscal Programme (CFP) on a cash basis consists of a deficit of BGN 4.474 billion under the national budget and a deficit of BGN 2.115 billion under EU funds.

The negative CFP balance increased by about BGN 500 million on a monthly basis. By comparison, at the end of September the deficit stood at BGN 6.055 billion, or 2.7% of projected GDP.

In early November, the European Commission transferred BGN 0.86 billion to Bulgaria under the second payment of the Recovery and Resilience Facility. A third tranche of nearly BGN 3.2 billion is expected by the end of the year, which will offset the EU funds deficit (over BGN 2.1 billion) and improve the current CFP balance, the Ministry said.

The fiscal reserve amounted to BGN 19.827 billion as of 31 October 2025, including BGN 15.141 billion in fiscal reserve deposits with the Bulgarian National Bank and commercial banks, and BGN 4.685 billion in receivables from EU funds for certified expenditures, advances and other items.

Revenues, grants and donations under the CFP as of October 2025 totaled BGN 66.782 billion, or 74.0% of the annual plan. Receipts increased by 14.9% (almost BGN 8.650 billion) compared with October 2024. Tax and social security revenues rose by 15.5% year-on-year (BGN 7.344 billion), non-tax revenues were up 19.7% (BGN 1.631 billion), while proceeds from grants and donations were BGN 326.6 million lower.

Tax revenues (including social security contributions) amounted to BGN 54.599 billion, or 77.1% of the annual estimate. Taxes and social security contributions accounted for 81.8% per cent of total CFP revenues. 

Non-tax revenues reached BGN 9.924 billion, or 82.8% of the annual plan, generated mainly from state, municipal and judicial fees, income from property, concession payments, sales of greenhouse gas emission allowances and other sources.

Revenues from grants and donations amounted to BGN 2.259 billion. 

Expenditures under the CFP, including Bulgaria’s contribution to the EU budget, reached BGN 73.372 billion as of October 2025, or 75.9% of the annual plan. For comparison, CFP expenditures in October 2024 stood at BGN 62.097 billion, though a transaction in February 2024, returning BGN 1.200 billion from an account for foreign funds of the Regional Development Ministry to the Ministry’s own budget, must be taken into account. After adjusting for this transaction, expenditures at end-October 2025 increased by BGN 10.075 billion (15.9%). Spending growth was driven mainly by higher social payments, including pensions, as well as capital expenditures, personnel costs and other items. 

Non-interest expenditures totalled BGN 70.393 billion, or 76.0% of the annual estimate, representing an increase of BGN 9.274 billion (15.2%) on a comparable basis from October 2024. Current non-interest expenditures amounted to BGN 62.719 billion. Capital expenditures (including the net increase in the state reserve) reached BGN 7.623 billion. Current and capital transfers abroad amounted to BGN 51.0 million. Interest payments totaled BGN 1.356 billion (83.6% of the annual plan), an increase of BGN 439.9 million year-on-year, reflecting the servicing schedule of the government debt.