Bulgaria's budget deficit set to hit 5.7% by year-end

Bulgaria's Finance Minister Galab Donev has projected that the country's budget deficit will reach 5.7% of gross domestic product (GDP) by the end of the year. Currently, the deficit stands at 2.8% of GDP, with the largest budget payments scheduled for the final months of the year. Donev clarified that the deficit is not a new issue created by the current government, attributing its origins to the policies of the previous administration. He emphasized that the government has no plans to defer payments to future years, aiming to avoid additional financial strain.

The government recently took on new debt amounting to 2.25 billion euros, primarily to fund payments under the Recovery and Resilience Plan and to ensure financial stability. Donev noted that debt is incurred only when there is a shortfall in funds, and reassured that policies affecting people's incomes will remain unchanged.

On inflation, Donev cited various factors contributing to rising prices, including global events and the war in the Middle East, which have disrupted oil and gas supplies. He dismissed the euro as a factor in price increases, instead criticizing the previous government for failing to address speculation after Bulgaria's positive assessment for eurozone accession. The minister also acknowledged that increases in salaries and pensions have influenced inflationary trends.

In other news, Donev outlined plans to restrict the sale of homemade rakia in commercial establishments, clarifying that the goal is not to ban its consumption. Additionally, he announced an imminent ban on gambling advertising, including billboards and neon signs at casinos, with advertising limited to sports team kits. The measure aims to protect citizens from dependency. Donev also described the return of Tsar Samuil's remains as a historic and unifying event for the nation.