Lack of State Budget Delays Payments for Major Infrastructure Projects

Bulgaria is already falling behind on payments for major infrastructure projects due to the absence of a state budget, outgoing Deputy Prime Ministe,r Grozdan Karadzhov, said on January 14. According to him, construction on key projects will be blocked by March because of a lack of funds.

Outgoing Finance Minister, Temenuzhka Petkova, also expressed regret over the situation, but said it was still too early to say exactly which areas would run out of money. She added that preliminary data on last year’s budget execution was better than expected.

Work on more than 30 main railway sections will be suspended, Karadzhov announced.

Grozdan Karadzhov, outgoing Deputy Prime Minister and Minister of Transport and Communications:
“At the moment, there is no money for investments. We have exactly the same level of funding as we had in January last year, when nothing was being built. Every morning I struggle with deciding where, when, and which companies have said they will stop working.”

He explained that due to the lack of a regular government a year ago, there are delayed payments dating back to 2024, and attempts to speed up the projects have now proven futile.

“Who will restart these sites? All this mobilisation also costs money. Who will pay the bills?” Karadzhov asked.

Temenuzhka Petkova, outgoing Finance Minister, said:
“There are also limits on the size of the debt. This is not a good option, of course, but I hope elections will be held as soon as possible so that Bulgaria can have a regular government.”

She added that the process of adopting the euro is proceeding smoothly and according to plan. Today, the government approved an additional €25 million working capital loan for Bulgarian Posts, as the company is currently exchanging between €7 million and €8 million per day.

Temenuzhka Petkova said:
“Forecast data show that budget execution for 2025 is exceptionally strong.”

The Transport Minister also said negotiations were continuing with the concessionaire of Sofia Airport to sign a new annex under which the company would pay the concession fees that had been waived during the Covid-19 pandemic.

Grozdan Karadzhov added:
“We have sent a new letter today, proposing that the full amount be paid in two instalments.”

photo by BTA

The two ministers, together with the author Nenko Atanasov, also validated the first postage stamp of the year, dedicated to Bulgaria’s membership of the eurozone.