The government has approved a draft bill to amend the Public Finance Act. It adds a new operational indicator, growth in net primary spending, which will be the basis of Bulgaria's fiscal policy in the short and medium term, the government press office said.
The aim is to bring Bulgarian rules in line with the EU's updated economic governance framework, known as the Stability and Growth Pact, and with Bulgaria's eurozone membership from 1 January 2026. The regulations and directives on national budget frameworks, on which the reformed framework is built, came into force on 30 April 2024.
The reference values do not change. The general government deficit stays at up to 3% of GDP, and debt at up to 60% of GDP.
Each country will be treated separately when its adjustment commitments are set, based on its debt and economic difficulties. The press office said the new framework aims for stable public finances that go together with reforms and investment for sustainable and inclusive growth in EU member states and in the EU as a whole.
Because Bulgaria is in the eurozone, the law also includes common rules to monitor and assess draft budget plans, and to ensure that countries in the currency union correct an excessive deficit.
The European Commission will require two new documents from Bulgaria: a National Medium-Term Fiscal-Structural Plan and an Annual Progress Report. They replace the National Reform Programme and the Convergence Programme.
The bill clarifies the rules on debt management and on the content and deadlines of budget documents. It also covers the prior assessment and prioritising of public investment funded from national sources.
In mid-October, the finance ministry sent the European Commission and the Eurogroup Bulgaria's Draft Budgetary Plan for 2027. It projects a general government deficit of 4.3% of GDP. The ministry said its measures to raise revenue and cut spending aim to end the excessive deficit procedure by 2029.
This is the first budget plan Bulgaria has drawn up as a full member of the eurozone. With it, the country enters the regular procedures for monitoring and coordinating economic policy in the European monetary union, BTA reported.