Growing budget deficit signals trouble ahead
The Bulgarian Ministry of Finance reported a budget deficit of 2.6 billion levs (1.2% of GDP) as of May 2025, indicating a renewed increase after a brief plateau in April. The government plans to end the year with a deficit of 6.4 billion levs (3% of GDP), but current data suggests this goal may be difficult to meet.
Revenue is growing at just 11.5%, far below the projected 25% annual increase, with the key VAT source lagging significantly. Although spending is currently restrained-mainly through delayed investment outlays-expenses are expected to rise in the second half of the year due to pension increases. Economists warn that unless revenue collection improves drastically, the year-end deficit could surpass expectations.
Financial collapse of Maritsa East TPP amid market shifts
The state-owned Maritsa East Thermal Power Plant (TPP) reported a significant loss of 101 million levs in 2024, a sharp reversal from its 57 million levs profit in 2023 and a record 1.2 billion levs in 2022. The main reason for the decline is lower electricity prices, which offset increased sales volume.
Operating revenues dropped by nearly 15% year-over-year, while liabilities soared from 248 million to over 700 million levs, largely due to emissions costs. Notably, 86% of the plant's output was sold on the regulated market to households, as it struggles to compete in the free market due to high production costs. This reliance on regulatory quotas raises concerns about the sustainability and competitiveness of the plant.
Road Agency commissions public satisfaction survey
The Bulgarian Road Infrastructure Agency (API) has commissioned a public satisfaction survey on road conditions, despite widespread public discontent already being evident through social media and past protests. The initiative is part of a European project aimed at bringing more structure and data-driven decision-making to road maintenance and construction planning. Currently, API's annual schedules lack transparency and consistency, making targeted data from different regions crucial, especially amid limited financial resources.
The contract for the survey was awarded to polling firm ESTAT for 102,000 levs, despite lower bids from other agencies, which were disqualified over concerns about unrealistically low pricing. The goal is to improve the quality and effectiveness of road infrastructure decisions, provided the survey is executed with sufficient depth and accuracy.
Growing budget deficit signals trouble ahead
The Bulgarian Ministry of Finance reported a budget deficit of 2.6 billion levs (1.2% of GDP) as of May 2025, indicating a renewed increase after a brief plateau in April. The government plans to end the year with a deficit of 6.4 billion levs (3% of GDP), but current data suggests this goal may be difficult to meet.
