Fiscal reserve and deficit: Is there a risk to public finances by the end of the year?

State of Public Finances

As of April 30, the fiscal reserve amounts to 6.8 billion euros. According to caretaker Finance Minister Georgi Klisurski, these funds are fully sufficient to cover all current state expenditures, including salaries and pensions, until a regular budget is adopted.

"Revenues will be sufficient for most current payments, and the available funds are enough to cover potential deficits over the next two months," Klisurski noted.

Budget Challenges

• Deficit Target: Efforts are focused on complying with the Maastricht criteria and keeping the budget deficit below 3% of GDP by the end of 2026.
• Debt Limit: Under the extension law, the state cannot take on entirely new debt – the limit is zero, with the exception of refinancing existing obligations.
• Investments: Significant expenditures under the Recovery and Resilience Plan are putting pressure on the deficit, which is considered a normal process.

The minister called for responsible resource management until the new budget framework, which will outline the country's financial course for the rest of the year, is voted upon.