Is Bulgaria's fiscal stability at risk?
Bulgaria is facing a serious risk of an excessive deficit procedure being initiated by the European Commission. According to Deputy Prime Minister Atanas Pekanov, the country is on the verge of an official warning due to the growing budget deficit and the unfavorable fiscal trajectory.
"If corrective measures are not taken, the risk that the deficit will exceed the critical 3% of GDP is quite real," warned Pekanov.
Critical "flawed practices" in the budget
Pekanov pointed out that in recent years, accounting practices have accumulated that have distorted the perception of the real state of public finances. While there is no talk of data falsification, the deferral of expenditures and the pre-payment of revenues have created an illusion of stability that can no longer be maintained.
Social policy and administration reforms
- Pensions: Indexation according to the "Swiss rule" remains a priority and will not be frozen.
- Covid supplements: These will be kept only for current pensioners, but will be discontinued for newly granted pensions.
- Administrative reform: The government plans to close ineffective agencies and reduce bonus systems to optimize the budget.
Recovery and Resilience Plan
Bulgaria is working urgently on the fourth payment in the amount of 1.1 billion euros. The successful absorption of these funds is key, as our country is currently lagging behind other member states in the pace of implementing reforms and investments.