Audits by the Bulgarian National Audit Office, commissioned by the National Assembly, have revealed serious problems in the management of public finances, the social security system and the Road Infrastructure Agency. The period reviewed for public finances covers the time from 1 January 2020 to 31 May 2026.
Konstantin Prodanov, chair of the Budget and Finance Committee, described the results as a picture of “irresponsible spending of public finances”, in which the long-term cost of decisions had not been taken into account. Stefan Belchev, chair of the Committee on Economic Policy, Investment and Industry, said the audit showed the real state of the state treasury.
Debt and wage costs are rising
According to data presented by Belchev, the cost of servicing the national debt alone increased from around EUR 1 billion in 2020 to more than EUR 2.5 billion in 2025.
The cumulative effect of automatic mechanisms for indexing remuneration in the public sector has reached BGN 14.3 billion. Belchev noted that after a statutory increase, these costs become permanent and can hardly be reduced if the financial situation deteriorates.
During the same period, Bulgaria’s population declined by 7.11%, while the number of public-sector employees per 1,000 people increased from 24 to 28. The average implementation rate for planned investments was 78%.
According to the data presented, the deficit reached EUR 6.73 billion in 2025, while the actual structural deficit worsened to 4.1% of gross domestic product. “In recent years, we have been living on borrowed money that our children will have to repay,” Prodanov commented.
The Road Infrastructure Agency has undertaken commitments worth BGN 18.2 billion
Significant discrepancies have been identified in the management of the Road Infrastructure Agency between its contractual obligations and its spending base. According to data presented by Prodanov, the agency has undertaken commitments worth BGN 18.2 billion against a spending base of BGN 11.4 billion.
The shortfall necessitated the allocation of more than BGN 1.6 billion through extraordinary decrees under the budget of the Ministry of Regional Development and Public Works. Some of the funds were used to pay old liabilities for routine repairs.
More than 1,000 certificates for repairs actually carried out, including in 2022, 2024 and 2025, had been held back and left unapproved for years. The value of the work is around BGN 2 billion, accumulated interest exceeds BGN 6 million, and unpaid compensation amounts to around BGN 300 million.
According to the conclusions of the Bulgarian National Audit Office, if these liabilities had been reported in a timely manner, the statutory deficit limits would have been exceeded in 2021, 2024 and 2025.
Spending on pensions and benefits has risen by 106%
The audit of the social security system found that spending on pensions and benefits had increased by 106% over the period under review. By comparison, gross domestic product rose by 87.6%.
Prodanov confirmed that cabinets appointed by then-President Rumen Radev had also governed during the period. He clarified that these governments had worked with different parliaments and budgets and had not adopted the budgets examined in the audits.
The next step is to present the draft budget on Friday and submit it to the National Assembly.