Former Finance Minister Predicts Hidden Deficit Could Trigger 2027 Financial Crisis in Bulgaria

Former Finance Minister and Fiscal Council Chairman Simeon Dyankov has warned that Bulgaria is likely to face a major public financial crisis in 2027, predicting that the country will be forced into an excessive deficit procedure. Speaking on BNT, Dyankov emphasized that a hidden deficit already exists for this year, noting that Bulgaria’s entry into the eurozone allowed authorities to obscure some clear gaps in the reporting of financial data.

Dyankov pointed to recent government spending practices as an example. He noted that in June and July, about 1.5 billion leva was allocated to infrastructure projects, matching the 25-year budget program. In August, however, the Ministry of Finance reportedly instructed ministries not to factor about 600 million leva of construction payments into official accounting. While the work was being carried out, this maneuver effectively kept the deficit off the books, creating the illusion of fiscal balance despite underlying pressures, Dyankov explained.

On the issue of the minimum wage, Dyankov said the government is expected to resolve the dispute before the draft budget reaches parliament. He suggested that the difference in calculations is minimal and unlikely to impact the overall deficit, and that the administration will probably revert to its previous formula, framing the decision as a symbolic gesture to the public.

The former Finance Minister also remarked that the current government is engaged in internal struggles over political influence, with factions competing to claim credit for major decisions, a dynamic that could shape economic policymaking in the months ahead.