Bulgaria Aims for 3% Budget Deficit by 2027 Amid High Inflation

The Bulgarian government has set ambitious targets for its economy, aiming to keep the budget deficit at no more than 3% by 2027. Prime Minister Rumen Radev announced this goal alongside restoring a sustainable financial system and maintaining predictable tax policy.

Radev made these comments at a conference organized by the Ministry of Finance and the European Stability Mechanism, which Bulgaria has joined. The government also signaled its intention to return to compliance with the Maastricht criteria.

The 3% deficit target is a significant challenge for Bulgaria, especially given its current inflation rate of 5.1%, which is one of the highest in the Eurozone. Deputy Prime Minister and Finance Minister Galab Donev acknowledged this issue but attributed it to external factors such as disrupted supply chains.

Pierre Gramegna, Managing Director of the European Stability Mechanism, praised Bulgaria's efforts to meet the deficit target and comply with EU rules quickly. He noted that other countries in Europe could learn from Bulgaria's example.