Fitch Ratings has warned that Bulgaria’s 2026 state budget reflects growing risks for the country’s public finances and economy, pointing to a deterioration in the fiscal position in recent years, BTA reported.
According to the international credit rating agency’s analysis, the expansionary fiscal policies adopted in recent years have increased pressure on government finances and created challenges for future budget management.
“The 2026 budget highlights the risks posed to the economy and public finances from fiscal easing in recent years,” Fitch experts said.
The agency noted that the government plans a significant reduction of the budget deficit in the 2027-2028 period. However, Fitch warned that achieving this goal could prove difficult because of structural spending commitments and political resistance to measures aimed at increasing revenues.
“Significant deficit reduction is envisaged for 2027-2028, but expenditure rigidities and opposition to tax increases pose challenges to fiscal consolidation,” the analysis stated.
