site.btaBulgaria Posts EU’s Largest Q1 Budget Deficit

Bulgaria posted the EU’s largest budget deficit in Q1 2026, at 7.6% of GDP, Eurostat data showed on Tuesday. Hungary followed at 6.6%, Poland at 5.9% and France at 5.1%.

The ratio deteriorated by 5.1 percentage points from the previous quarter, the sharpest worsening among the countries covered by the data.

In Q1, the seasonally adjusted general government deficit-to-GDP ratio stood at 3.1% in both the euro area and the EU, Eurostat data showed.

In January-March, the deficit-to-GDP ratios for the euro area and the EU fell from 3.2% and 3.4%, respectively, in Q4 2025.

In Q1 2026, total government revenue in the euro area was 47.1% of GDP, down from 47.3% in Q4 2025, mainly because seasonally adjusted revenue rose by only about EUR 1 billion in nominal terms, with the increase offset by higher nominal GDP.

Total government expenditure in the euro area was 50.2% of GDP, down from 50.4% in the previous quarter, as seasonally adjusted total expenditure fell by about EUR 1 billion while GDP increased.

In Q1 2026, total government revenue in the EU was 46.6% of GDP, compared with 46.7% in the previous quarter. Seasonally adjusted total revenue rose by about EUR 9 billion from Q4 2025.

Total government expenditure in the EU was 49.8% of GDP, down from 50.1% in the previous quarter. Seasonally adjusted total expenditure fell by about EUR 2 billion QOQ.