site.btaBudget Deficit Rises by Nearly BGN 925 Mln on Month to BGN 4,278 Mln at End-July

As at end-July 2025, the budget deficit increased by BGN 925 million on month to BGN 4,278.5 million on a cash basis (1.96% of the projected GDP). It was formed by a national budget deficit of BGN 2,780.1 million and an EU funds deficit of BGN 1,498.5 million, the Finance Ministry said on Monday. 

By comparison, at end-June 2025, the Consolidated Fiscal Programme (CFP) budget deficit stood at BGN 3,353.6 million (1.5% of the projected GDP).

The fiscal reserve as of end-July was BGN 19,778.3  million, including BGN 17,953.2 million of fiscal reserve deposits with the Bulgarian National Bank and banks, and BGN 1,825.1 million of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Finance Ministry published the key CFP parameters as of end-July 2025.

CFP revenues, grants and donations as of July 2025 amounted to BGN 46,358.1 million, 51.4% of the annual projection. Revenues increased by 13.5% (BGN 5,511.3 million) compared to a year earlier. This growth is mainly due to the tax revenues, which increased by 16.7% (BGN 5,418.1 million).

Non-tax revenues increased by 12.9% (BGN 787.3 million) compared to a year earlier, while proceeds from grants and donations were down by BGN 694.1 million.

Tax revenues, including revenues from social security contributions, totalled BGN 37.793.3 million, 53.3% of the annual projection. Tax and social security contribution revenues accounted for 81.5% of the total CFP revenues. The late adoption of the 2025 State Budget Act delayed the implementation of changes related to measures for improving revenue collection and combating the shadow economy, shortening the period during which they will be applied in 2025. Still, the actions taken by the revenue administrations to increase collection are beginning to have an effect on VAT revenues, the Finance Ministry said.

Non-tax revenues amounted to BGN 6,899.0 million, 57.5% of the annual estimates. These revenues are formed mostly from state, municipal and legal expense revenues, rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation revenues totalled BGN 1,665.7 million.

CFP expenditures, including Bulgaria's contribution to the EU budget for July 2025, amounted to BGN 50,636.6 million, 52.4% of the annual estimates. By comparison, CFP expenditures in July 2024 totalled BGN 41,818.9 million. It should be taken into account that there was a transaction for reimbursement of BGN 1,200 million from the external funds account of the Ministry of Regional Development and Public Works back to the Ministry's budget reported in February 2024. After excluding this transaction and for the purposes of data comparability, expenditures as of end-July 2025 increased by BGN 7,617.7 million (17.7%). An increase was seen mainly in spending on social payments, including pension expenditures, as well as on personnel costs, capital expenditures, etc.

Non-interest expenditures amounted to BGN 48,710.4 million, 52.6% of the annual estimates, increasing (on a comparable basis) by BGN 7,058.2 million (16.9%), compared to those reported in July 2024. Non-interest current expenditures totalled BGN 43,391.3 million. Capital expenditures (including net increment of state reserve) amounted to BGN 5,278.0 million. Current and capital transfers to other countries amounted to BGN 41.2 million. Interest payments stood at BGN 758.8 million (46.7% of those planned for the year, increasing by BGN 239.7 million from a year earlier, mainly due to the government debt service calendar).