By the end of July this year, the budget deficit of the Republic of Bulgaria amounted to 2.201 billion euros on a cash basis, according to an official statement from the Ministry of Finance. This negative balance under the Consolidated Fiscal Program (CFP) corresponds to 1.8 percent of the projected gross domestic product (GDP).
The released data confirm the preliminary estimates presented earlier this month. On a monthly basis, the negative balance was optimized by approximately 200 million euros, down from the 2.4 billion euro deficit recorded at the end of June.
The fiscal reserve as of July 31, 2026, stood at 8.525 billion euros. This amount includes 8.039 billion euros in the form of fiscal reserve deposits with the Bulgarian National Bank (BNB) and commercial banks, as well as 485.8 million euros in receivables from European Union funds intended for advances, certified expenditures, and other purposes.
Total revenues, grants, and donations under the CFP for the period up to July 2026 reached 26.347 billion euros, which is 53.1 percent of the annual estimates. On an annual basis, receipts show an increase of 11.2 percent (or 2.644 billion euros) compared to the same period in 2025. The main components of the revenue include:
- Tax and social security revenues amounting to 21.076 billion euros, representing 54.8 percent of the annual estimates.
- An important indicator is that tax and social security receipts account for 80 percent of total CFP revenues for the reporting period.
- Non-tax revenues amounting to 3.083 billion euros (53.3 percent of the annual plan), marking a decrease of 443.6 million euros compared to the previous year. This decline is mainly due to lower dividend payments from state-owned enterprises, as an interim dividend was paid in 2025. These revenues consist of fees (state, municipal, and judicial), concessions, sales of greenhouse gas emission allowances, and property income.
- Revenues from grants and donations amounting to 2.187 billion euros, which includes a payment from the European Union under the fourth request from the Recovery and Resilience Plan worth 896.1 million euros.
Expenditures under the Consolidated Fiscal Program (including the Republic of Bulgaria's contribution to the EU budget) as of July 2026 amounted to 28.548 billion euros, or 50.3 percent of the annual estimates. For comparison, during the same period in 2025, expenditures were 25.890 billion euros. The increase is explained by the following factors:
- Higher pension costs following indexation based on the "Swiss rule" in July 2025 and July 2026.
- An increase in the minimum wage as of January 2026 and additional salary adjustments based on 2025 cumulative inflation.
- Increased spending on social and health insurance payments, as well as personnel costs.
- Significant growth in capital expenditures related to the implementation of projects under the National Recovery and Resilience Plan and the Municipal Investment Program.
Non-interest expenditures totaled 27.237 billion euros, representing 50.2 percent of the annual estimate, which is an increase of 2.332 billion euros compared to July 2025. In this category, current non-interest expenditures amounted to 24.125 billion euros, while capital expenditures reached 3.093 billion euros. Interest payments amounted to 649.7 million euros, marking an increase of 261.7 million euros compared to a year earlier, while transfers provided abroad totaled 18.7 million euros.