The budget deficit reached 2.8% of gross domestic product by the end of September. The negative balance stands at €3.7 billion, the Ministry of Finance reported. Revenue and expenditure performance is lagging behind the annual estimates initially set.
Revenue amounts to €33.8 billion, or 68.3% of the funds planned for the year. This is 10.9% more than in the same period of the previous year. Expenditure stands at €37.6 billion, representing 66.1% of the annual estimates.
Pensions, wages and investment expenditure
According to the Ministry of Finance, the main factors behind the increase in expenditure are the rise in pensions following indexation under the Swiss rule on 1 July 2025 and 1 July 2026, as well as the increase in the minimum wage from January 2026.
The increase in remuneration by the amount of accumulated inflation for 2025, which stands at 5%, was also cited among the reasons. The measure has been in effect since January 2026.
Capital expenditure has also seen a significant increase. This is linked to the implementation of investments and projects under the National Recovery and Resilience Plan, as well as under the Municipal Investment Programme.
October data expected
The next data on budget execution will concern October. The Ministry of Finance is expected to publish its forecast for budget execution by the end of the month on 3 November.
Sources: bntnews.bg