Първи бюджет в евро за България: фискална консолидация или експанзия?
First Budget in Euro for Bulgaria: Fiscal Consolidation Or Expansion?

Author(s): Diyana Metalova
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Economic policy, EU-Approach / EU-Accession / EU-Development, Public Finances, Fiscal Politics / Budgeting
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Fiscal Policy; Budget; Fiscal Expansion; Fiscal Consolidation; Budget Deficit
Summary/Abstract: This study examines whether the draft budget of the Republic of Bulgaria for 2026, released for public consultation, envisions fiscal consolidation or fiscal expansion. The 2026 budget will be Bulgaria’s first to be prepared in euros. As a member of the eurozone, Bulgaria must continue to comply with the Maastricht criteria, several of which relate directly to fiscal policy. The requirement to maintain a budget deficit below 3% of GDP remains the government’s most significant challenge. Once again, the budget is being formulated amid political instability and worsening public finances. The evidence suggests that the 2026 budget will necessitate politically unpopular measures, including spending cuts or tax increases.

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