The Council of the European Union confirmed the opening of an excessive deficit procedure against Bulgaria proposed by the European Commission in early June, recommending that the Bulgarian government take measures to rein in public spending. This is stated in a recommendation of the Council of the EU, published in the Official Journal of the EU, BNT reported.
Bulgaria should ensure that the nominal growth rates of net government expenditure do not exceed 4.2 percent in 2026, 3.4 percent in 2027, 3.4 percent in 2028 and 3.2 percent in 2029, the Council of the EU recommends, specifying that in this way the country should overcome the excessive deficit situation by 2029.
The deadline by which Bulgaria must take effective action and submit the necessary measures together with its draft financial plan for 2027, which must be submitted to the EC and the Eurogroup, is 15 October 2026.
Bulgaria should report on the progress achieved in implementing this recommendation at least every six months - in the spring in its annual progress report by 30 April, and in the autumn in its draft budgetary plan by 15 October, until the excessive deficit has been corrected, the EU Council's position also states.
Until 2028, Bulgaria is allowed to exceed the maximum growth rates of net expenditure set by this Council Recommendation, provided that net defence-related expenditure does not deviate by more than 0.6 to 0.9 percentage points from the maximum values.
After 2028, Bulgaria may be allowed to exceed the maximum growth rates of net expenditure, provided that they are related to deliveries of military equipment agreed before the end of 2028.
In order to ensure that the additional expenditure is taken into account, the Bulgarian authorities should include actual and planned data on total defence expenditure, including defence investment and all expenses that will be financed through loans under the SAFE program.
We recall that the Ministry of Finance published on Wednesday a draft state budget for 2026 with an expected deficit of 5.7 percent of gross domestic product (GDP).
The size of the budget balance under the consolidated fiscal program (CFP), expressed as a share of GDP, during the forecast period 2026-2028 is a deficit of 5.7 percent of GDP in 2026, 3.8 percent of GDP in 2027 and 3.0 percent of GDP in 2028.
The parameters of the budgetary framework for the period 2026-2028, to the extent that the possibilities for adjustments allow as early as this year, are in line with the European Commission's proposal to activate an excessive budget deficit procedure. deficit and the need to stabilize public finances in the medium term, is written into the texts.
The draft state budget for 2026 will be submitted for consideration to the Council of Ministers on July 1, and will be sent to the National Assembly on the same day, Deputy Prime Minister and Minister of Finance Galab Donev announced yesterday.