Bulgaria’s Budget Deficit Soars Despite Lowest Debt in EU

Bulgaria is currently experiencing a significant budget deficit, according to the latest data from Eurostat. In the first quarter of 2024, the country's seasonally adjusted budget deficit as a percentage of GDP was -5.6%. This places Bulgaria among the highest in the European Union for budget deficits relative to GDP, on par with France. Only Hungary and Romania have higher deficits, with figures of -6% and -7%, respectively.

Interestingly, Bulgaria also holds the lowest government debt-to-GDP ratio in the EU, reported at just 22.6% for the same period. This contrasts sharply with countries like Greece, where the ratio is as high as 159.8%, and Italy and France, with ratios of 137.7% and 110.8%, respectively. Estonia and Luxembourg also have lower debt ratios, at 23.6% and 27.2% respectively.

Compared to the previous quarter, Bulgaria's deficit indicator saw a drastic decline of 9.1 percentage points, marking the most significant negative shift among EU countries. On the other hand, the EU as a whole saw varied changes in debt ratios during the fourth quarter of 2023. While twenty member states reported increases in their debt-to-GDP ratios, including Slovakia and Belgium with notable rises, seven countries, including Greece and the Netherlands, saw decreases. Bulgaria’s debt ratio decreased slightly by 0.5 percentage points during this period.