Saving is the only way to finance extra expenditure until the end of the year, as no revenue over-performance is expected, Bulgaria’s caretaker Minister of Finance Rositsa Velkova said. Minister Velkova pointed out that the mid-year budget overperformance is temporary and that capital spending is mostly from EU funds, the BTA reported.

According to Minister Velkova, there will be savings from capital expenditures, but their amount will be insignificant. EUR 35 million will be earmarked for unforeseeable costs - for the forthcoming snap elections and for the accommodation of Ukrainian refugees.

In 2022, the country’s gross domestic product (GDP) will grow 2.9%. In 2023, Bulgaria’s GDP is expected to increase with 2.2%. The National Assembly raised the government debt ceiling to EUR 5.2 billion in 2022. So far, Bulgaria has issued government bonds to the tune of EUR 900 million. The deficit under the consolidated fiscal programme for 2022 will be 4.1% of the projected GDP and the General Government Sector’s deficit will reach 6% of the GDP. In 2023, the deficit under the consolidated fiscal programme is expected to stand at 6.8% of the GDP and the General Government Sector’s deficit will be 6.4% of the GDP, Rositsa Velkova said.