Bulgaria has completed the 2025 execution of its consolidated fiscal programme (CFP) with a deficit of BGN 6,828.3 million (around EUR 3.49 billion), equal to 3.1% of projected GDP, according to monthly cash-execution reports announced by the Ministry of Finance. This means a deviation of only 0.1 percentage points from the indicative annual target of 3% of GDP, despite earlier concerns that the deficit might overshoot the benchmark more clearly.

The finance ministry argues that the outcome reflects consistent efforts throughout the year: improving revenue collection on the one hand, and maintaining expenditure discipline on the other—despite a challenging economic environment.

Revenues: the strongest nominal increase in years

Total revenues (including grants and donations) reached BGN 86,086.2 million (around EUR 44.01 billion) in 2025, or 95.4% of the annual plan. Year on year, revenues rose by BGN 14,071.0 million (around EUR 7.20 billion), a 19.5% increase—described by the ministry as the largest nominal rise recorded in recent years.

The main driver was tax revenue, which increased by 15.3% versus 2024, or BGN 8,986.8 million (around EUR 4.59 billion). Non-tax revenues grew by BGN 2,168.0 million (around EUR 1.11 billion), while grants and donations rose by BGN 2,916.2 million (around EUR 1.49 billion).

Expenditures: growth driven by social spending, wages, and investment

Total CFP expenditures, including Bulgaria’s contribution to the EU budget, amounted to BGN 92,914.5 million (around EUR 47.50 billion), equal to 96.1% of the annual estimates. For comparison, CFP spending in 2024 was BGN 78,178.8 million (around EUR 39.96 billion), though that figure included a one-off operation in February 2024—BGN 1,200.0 million reimbursed from the foreign funds account of the Ministry of Regional Development and Public Works.

After excluding this transaction for comparability, expenditures in 2025 increased by BGN 13,535.7 million (around EUR 6.92 billion), or 17.1%. Three categories stand out in the composition of the increase:

• Social and health insurance spending: up BGN 4,141.6 million (around EUR 2.12 billion), i.e. +11.9%
• Personnel costs: up BGN 4,050.4 million (around EUR 2.07 billion), i.e. +20%
• Capital expenditures and transfers: up BGN 3,514.6 million (around EUR 1.80 billion), i.e. +43.9% on a comparable basis

The investment component linked to EU-funded projects increased particularly strongly. Spending and transfers from the National Fund related to the Recovery and Resilience Plan amounted to BGN 2,790.7 million (around EUR 1.43 billion) and—according to the ministry—were nearly equal to the total payments recorded over the previous two years combined, reflecting the renegotiation of the plan and accelerated project implementation during 2025.

EU contribution, debt, and the fiscal reserve

By the end of 2025, Bulgaria’s contribution to the EU budget paid from the central budget totalled BGN 2,036.0 million (around EUR 1.04 billion) and, according to the authorities, was in line with the applicable EU own-resources rules.

As of 31 December 2025, the nominal amount of state debt stood at BGN 61.4 billion (around EUR 31.4 billion), with a debt-to-GDP ratio of 27.8%. The fiscal reserve amounted to BGN 17,467.038 million (around EUR 8.93 billion). Of this, BGN 14,865.883 million (around EUR 7.60 billion) was held in deposits with the Bulgarian National Bank and commercial banks, while BGN 2,601.155 million (around EUR 1.33 billion) represented receivables related to EU funds, including certified expenditures, advances, and other items.

Overall, the 2025 budget picture shows two parallel trends: very strong revenue growth (largely tax-driven) and a marked rise in spending—both in socially sensitive areas and in investment, boosted by accelerated EU-related payments. The final outcome—a deficit close to target—suggests that Bulgaria managed to balance higher expenditures with improved revenue collection.