The budget will be the first major task before the new government, writes economist Petar Ganev, who is part of the team of the Institute for Market Economics, quoted by the Bulgarian National Radio. According to him, this task before the new government is completely feasible.
Bulgaria is in its worst fiscal position since the beginning of this millennium, writes Ganev, drawing attention to the fact that spending consistently exceeds the 40% of GDP mark. The budget deficit for last year amounted to 3.5% of GDP, and for the first three months of 2026 alone, the deficit is 1.5 billion euros. The state debt in Bulgaria reaches 30% of GDP in 2025, and if the current trajectory of state finances is maintained, the country is heading towards debt levels of the order of 45-50% of GDP by 2030.
What needs to be done, according to Petar Ganev. The economist emphasizes that Bulgaria is still reporting good economic growth and is in a new period of higher inflation. The combination of these factors means a strong growth in revenues in the state treasury (about 15% on an annual basis).
"If you want to have stability and govern with a horizon of four years, you need to control spending in time, reverse the trajectory of the budget and allow the economy to grow. "The latter will practically finance your government (through the budget)," Ganev writes in his analysis aimed at the new cabinet, while adding that "if you let the budget completely go beyond the limits, painful measures, zero growth and political instability will follow."