Public Debt: Over BGN 16.5 Billion in Six Months

Unprecedented Spending of Public Debt: Over BGN 16.5 Billion in Half a Year

In a video address published on the official page of "We Continue the Change" (WCC), the party leader Asen Vasilev shed light on alarming financial trends, posing a direct question to Minister of Finance Temenuzhka Petkova. Vasilev stated that over the past six months, our country has incurred a larger amount of public debt than the amount accumulated over the previous three years combined. This dramatic increase in indebtedness raises serious questions about the spending of public funds.

Critical Analysis of Expenditures and Priorities

According to Asen Vasilev, since the adoption of the 2025 budget, over BGN 16.5 billion has been withdrawn—an amount he describes as unprecedented for such a short period. The WCC leader recalled how BGN 15.5 billion was spent during the years 2022, 2023, and 2024, providing specific examples that, according to him, had a direct positive impact on the lives of citizens. He highlighted the nearly twofold increase in pensions and salaries, the introduction of tax relief for young families, the provision of free textbooks for all students from the 1st to the 12th grade, as well as the one-time assistance of BGN 300 for children in the first, second, third, fourth, and eighth grades.

Vasilev emphasized that previous governments also invested in key infrastructure and public services. He pointed to the transformation of the budget of the "Road Infrastructure Agency" (RIA) from BGN 350 million to an impressive BGN 4 billion, the allocation of over BGN 1 billion for new trains for the needs of the BDZ, funding for the acquisition of medical helicopters, and the purchase of over 4,000 new ambulances.

At the same time, Vasilev criticized the current financial policy, pointing out that over the past six months, incomes have been frozen, while prices continue to rise, which further exacerbates the economic situation of households.

Bulgaria's Debt Exposure: Facts and Figures

In parallel with Vasilev's statements, the financial world continues to register active debt-raising operations. The Bulgarian National Bank announced yesterday that the Ministry of Finance has placed BGN 300 million of new debt on the domestic market. The issuance of three-year treasury bonds with an annual interest rate of 2.75% was realized at an average annual yield of 2.40%.

This operation represents the tenth auction for debt placement on the domestic market since the beginning of 2025, according to BTA data provided by the Ministry of Finance. To date, the total amount of new debt raised from the domestic market amounts to BGN 2.4 billion.

On the international capital markets, significant debt operations were also realized. In April, our country incurred debt in the amount of EUR 4 billion (BGN 7.82 billion), and in July, bonds worth EUR 3.2 billion (BGN 6.25 billion) were placed. Summed up, from the beginning of the year to date, Bulgaria has incurred new public debt in the amount of nearly BGN 16.5 billion.

This amount is only BGN 2.4 billion less than the maximum allowable amount of new public debt for the entire year, which is set at BGN 18.9 billion, indicating that the government is on track to exhaust the annual limit in less than seven months. Experts are monitoring these processes with increased attention, as they have a direct impact on the financial stability of the state and the long-term prospects for economic development.