Bulgaria is in first place in the European Union and the eurozone in terms of the size of the budget deficit for the first quarter of 2026, seasonally adjusted Eurostat data published on Tuesday show. At the end of March, the deficit reached 7.6% of gross domestic product (GDP), thus putting the country ahead of Hungary (6.6% of GDP), Poland (5.6% of GDP) and France (5.1% of GDP).
The data are close to the forecast cited in early June by Finance Minister and Deputy Prime Minister Galab Donev for a deficit of over 7.4% of GDP at the end of the year, if no budgetary measures are taken. Compared to the previous quarter, the change is 5.1 pp of GDP – the largest deterioration of the deficit in the euro area and the EU over the period.
The deficit in the euro area and the EU reaches 3.1% of GDP, which for the euro area is a slight decrease compared to the 3.2% in the euro area and 3.4% in the EU reported in the fourth quarter of 2025.
In the first quarter of 2026, total government revenue in the euro area amounted to 47.1% of GDP – a decrease compared to the 47.3% reported in the fourth quarter of 2025, which is mainly due to the fact that the insignificant increase in seasonally adjusted revenue in absolute terms by about EUR 1 billion was offset by the growth in nominal GDP. Expenditure in the euro area is at the level of 50.2% of GDP – a decrease compared to the previous quarter (50.4% of GDP) due to a decrease in seasonally adjusted total expenditure by around €1 billion, as well as an increase in nominal GDP.
In the EU, total government revenue reaches 46.6% of GDP in the first quarter of 2026, the ratio representing a slight decrease compared to 46.7% reported in the fourth quarter of 2025, although seasonally adjusted total revenue in the EU increased by around €9 billion compared to the previous quarter. Total government expenditure in the EU was 49.8% of GDP, which represents a decrease compared to 50.1% of GDP in the previous quarter. Seasonally adjusted total expenditure decreased by around €2 billion compared to the last quarter of 2025.