Representatives of Bulgaria’s ruling coalition have once again highlighted a significant deficit in the state budget, with Stanislav Balabanov from "There Is Such a People" (TISP) stating that 2025 will be a transitional year regarding the eurozone. He suggested that the country would need to tighten its fiscal policies before moving forward with euro adoption. His remarks came ahead of a meeting of the Joint Management Council, which is discussing the budget for 2025.

Balabanov criticized former Finance Minister Asen Vassilev, arguing that those responsible for previous budget decisions should not be advising on financial matters. He emphasized the need for a coalition mechanism to manage the budgetary challenges, reiterating that Bulgaria would enter the eurozone only when fully prepared.

However, Vassilev's budgets were approved with the backing of GERB, the leading party in the current ruling majority. Some major expenditures, such as salary increases for the Ministry of Interior, were also supported by TISP, despite opposition from "We Continue the Change – Democratic Bulgaria" (WCC-DB) and objections from Vassilev himself as finance minister.

Regarding public funds and infrastructure projects, GERB’s Nikolay Nankov pointed out financial gaps, mentioning that over 500 million leva remain unpaid under the municipal program. He noted that back in early 2024, concerns were raised about insufficient budget allocations for municipalities, warning local governments against starting large-scale projects without secured funding. He also highlighted outstanding payments exceeding 400 million leva at the Road Infrastructure Agency.

Last week, government partners discussed the state of public finances and the 2024 budget parameters. GERB leader Boyko Borissov called on Finance Minister Petkova to clarify the amount of deferred expenses for 2024 that would be carried over to 2025 in order to meet the planned deficit target. He made the request on Facebook following a meeting with mayors and municipal council representatives in the Veliko Tarnovo region. Petkova promptly responded to his inquiry.

Venko Sabrutev from WCC-DB dismissed the ruling party’s criticism of Vassilev, arguing that claims about a major budget deficit were unfounded. He insisted there was no financial shortfall in 2024, refuting earlier warnings about an 18-billion-leva deficit. According to him, the actual deficit stands at 3%, or six billion leva.

Sabrutev stated that the budget for 2025 depends on the current government, questioning the feasibility of a 15-billion-leva investment program when last year’s budget included 10 billion leva but only six billion were used. He also addressed concerns about increasing salaries in the Ministry of Interior and other services, noting that the measure was already approved by the 50th National Assembly and is now in effect.

He challenged Borissov to clarify his fiscal priorities, questioning whether he would allocate funds for law enforcement at the expense of healthcare, education, and social programs. Sabrutev also stressed that WCC-DB advocates for reforms to ensure that increased public spending on security is matched by tangible improvements in safety.

Sources:

• Club Z
• BTA
• Dnevnik