The Bulgarian government is preparing a series of fiscal measures aimed at containing the budget deficit, including a higher debt ceiling, changes to pension indexation rules, and lower state financing for political parties.
Progressive Bulgaria MP Konstantin Prodanov announced that lawmakers will propose increasing the maximum amount of state debt by an additional €3.8 billion between the first and second readings of the latest extension budget law. According to him, the primary purpose of the new borrowing authority is to provide advance financing for projects included in the Recovery and Resilience Plan.
"This amount will primarily be used for advance financing of project plans under the Recovery and Resilience Plan," Prodanov said.
He noted that Bulgaria has already raised approximately €1.4 billion this year, mainly to refinance maturing government obligations. Under current legislation, the state can generally issue new debt only to replace existing debt that is coming due. The proposed amendment would allow borrowing to support investment spending while the temporary extension budget remains in force, which is expected until the 2026 state budget enters into effect, likely on August 1.
