Investor Presentaiton
General Government balance in line with EU countries
Prudent fiscal policies have been at the core of Bulgaria's strong economic performance
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In the period 2017-2019, the budget balance of the General
Government sector was positive, with an average surplus
of 1.8% of GDP (on an accrual basis), thus allowing
Bulgaria to accumulate buffers in the fiscal reserve
Throughout 2017-2020, growth in tax revenue was close or
above nominal GDP dynamics. In 2021-H1'23 the increase
in tax revenue was slightly lower than the growth in GDP as
some of the support programmes had a negative revenue
effect. Investment spending during the 2017-2019 period
increased due to the accelerated absorption of EU funds,
while during 2020-2022 the increase was linked to social
protection spending, public sector wages and subsidies for
non-financial enterprises as a result of the budgetary
measures taken to contain the negative effects of the
pandemic and rising energy prices.
In 2020, despite the unprecedented fiscal stimulus mobilised
to combat the pandemic (3.2% of GDP), the budgetary
position of Bulgaria remained stable. In 2021 the fiscal
balance of Bulgaria was negative at -4.0% of GDP (ESA
2010 terms), while the EU27 registered a deficit of -4.7 of
GDP. In 2022 the budget deficit was -2.9% lower than the
average of the Euro area and the EU.
The Ministry of Finance expects the budget deficit with the
target set in the ABL for 2023 at -2.5% of GDP (cash basis),
consistent with 3.0% of GDP in ESA 2010 terms. Thus the
budget position for the year is expected to be in line with the
Stability and Growth Pact requirements.
Fiscal Balance (ESA 2010, % of GDP)
2.1
1.6
1.7
-2.9
-3.0
2017
2018
2019
-3.8
2020
-4.0
2021
2022
F 2023
Source: Eurostat, MoF
General Government (GG) surplus (+)/deficit (-), % of GDP
-1.9
-2.9
-4.0
-2.6
-3.3
-4.7
-2.9
-3.6
-5.2
BG
EU-27
EA - 19
-1.6
GR
-2.1
-7.0
-3.1
HU
-6.2
-7.2
-4.4
RO
-6.3
-7.2
-3.7
SI
-3.0
-4.6
-8
-6
-4
-2
0
■ Q2 2023
2022 2021
Source: Eurostat
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