How Can Bulgaria Maintain a Strict Fiscal Policy?

The Managing Director of the International Monetary Fund has called for strong fiscal discipline. Kristalina Georgieva attended the regular meeting of the Fund’s and the World Bank’s group in Varna, days after the G7 summit. The forum was also attended by Finance Minister Galyab Donnev and the Governor of the Bulgarian National Bank, Dimitar Radev.

Georgieva’s advice, in response to a question on whether to spend or invest, was not to spend money that we do not have.

Kristalina Georgieva, IMF Managing Director: "My answer is ‘to invest’. To use the limited resources we have wisely. Do not spend money you do not have. And those you do have, invest in your future – in innovation, education and digital infrastructure.”

Dimitar Radev, Governor of the Bulgarian National Bank: “As regards the specific question of financial stability, the prescriptions are clear. If we place this in the context of the problems we face in Bulgaria, this means returning to a path of sound, prudent fiscal policy and better coordination between fiscal and monetary policy. We have witnessed that in recent years we have not had very good coordination in this respect.”

Galab Donev, Minister of Finance: “The message to Bulgaria from international financial institutions at a time when the country is preparing its budget for 2026 is that a thorough analysis must be carried out of the efficiency of public spending. And the other message is how to move away from overspending and to spend only as much as we earn.”