Bulgaria’s budget deficit reached €2.2 billion in the first seven months of 2026, as government spending continued to rise faster than revenue, according to data from the Ministry of Finance on the implementation of the consolidated fiscal program.
By the end of July, the budget balance was negative by €2.201 billion, equivalent to 1.8% of projected gross domestic product. Although budget revenue has increased significantly compared with the same period last year, the growth has not been enough to offset higher expenditures.
The state collected €26.35 billion in revenue during the first seven months, an increase of 11.2% from a year earlier. Spending, however, reached €28.55 billion, compared with €25.89 billion during the same period of 2025.
Non-interest expenditures totaled €27.24 billion, up €2.33 billion, or 9.4%, year-on-year. The main areas driving the increase include social and health insurance payments, pensions, public-sector wages and capital spending.
The Finance Ministry attributed much of the increase in social spending to the annual pension adjustments under the so-called Swiss rule in July 2025 and July 2026. Higher personnel costs have also contributed, reflecting the increase in the minimum wage from the beginning of 2026 as well as additional pay increases linked to accumulated inflation in 2025.
