In brief
In September 2026, Bulgaria’s consolidated fiscal programme deficit rose to €3.669 billion—2.8% of projected GDP—widening by about €590 million from August, according to the Finance Ministry. Revenues climbed 10.9% year‑on‑year, largely due to higher tax receipts and EU grants, while social security and pension payments pushed the deficit higher. The fiscal reserve remained €8.478 billion at month‑end, demonstrating the government’s buffer for the coming months.
The Bulgarian Finance Ministry announced on Monday that the Consolidated Fiscal Programme (CFP) deficit for September 2026 had crept up to €3.669 billion, or 2.8 percent of projected gross domestic product. The figure, published by the BTA, shows a widening of about €590 million over the August deficit of €3.075 billion, or 2.4 percent of GDP.
At the same time, the Ministry reported that CFP revenues, grants and donations reached €33.898 billion in September—68.3 percent of the annual estimates—and grew 10.9 percent year‑on‑year. The rise, the BTA notes, was led by a 9.9 percent jump in tax and social‑security contributions, amounting to €27.201 billion, and an increase of €1.502 billion from grants and donations, dominated by European Union programme funds.
Non‑tax revenues fell by €609.3 million compared with September 2025. The drop, the Ministry said, reflected lower dividend proceeds from state‑owned enterprises, as the interim dividend for 2025 was paid in 2025 rather than 2026.
Expenditure for the month reached €37.567 billion, or 66.1 percent of the annual estimates. Spending rose mainly on social security, pensions and contributions, the source added, and included Bulgaria’s share of the EU budget for September 2026.
Despite tighter spending on social benefits, the fiscal reserve remained solid at €8.478 billion at month‑end. The reserve, the BTA reported, comprised €6.565 billion in deposits held at the Bulgarian National Bank and other banks, and €1.912 billion in receivables under EU funds earmarked for certified expenditures and advance payments.
For residents, the widened deficit signals a continued tightening of public finances. Higher social‑security payments—used to support retirees and low‑income earners—have pushed the deficit up, but the government’s steady rise in tax receipts, especially from EU assistance, keeps the shortfall from growing faster.
Analysts say the fiscal surplus built over previous months is eroding, which may lead to higher future taxes or cuts in subsidies if the trend persists. The Ministry has said it will continue monitoring revenue streams and expenditures; any adjustments will be communicated in the next quarterly report.
