500 million more instead of 407 million less. In short, this is how the calculations look.
The execution of the budget for January might end with a surplus instead of a deficit, as the initial forecasts by Finance Minister Temenuzhka Petkova suggested, learned BNT from sources in the cabinet.
For the fifth day in a row, the Ministry of Finance has not announced the data on the budget execution for January, but they have reported unexpected funds from military contracts.
The ministry has neither confirmed nor denied the information about a possible surplus. At the end of January, the newly appointed Finance Minister announced that the deficit would be 407 million BGN, meaning expenses would exceed revenues by that amount.
According to sources from the Ministry of Finance, the data at the time was misleading in two ways – first, the full picture was not presented, just a partial one, and second, the surplus was expected to be another half a billion, meaning the initial estimate was off by 900 million BGN. A day ago, the Deputy Minister of Finance and former caretaker Minister of Finance, Lyudmila Petkova, left the ministry.
At a press conference today, February 5, Defence Minister Atanas Zapryanov announced that unexpected funds had been received under two contracts with Denmark related to aid for Ukraine.
Atanas Zapryanov, Minister of Defence: "At the end of January, the Ministry of Defence received funds amounting to 265.9 million BGN. Additionally, during January, another 82.9 million BGN was received."
The Finance Minister immediately calculated that this would help the fiscal situation.
Temenuzhka Petkova, Minister of Finance: "With the receipt of these funds totaling 348 million BGN, we are seeing an improvement in the budget and fiscal balance, both at the state budget level and within the consolidated fiscal programme."
Just a week and a half ago, Temenuzhka Petkova announced that the budget would finish January with a deficit of 407 million BGN.
Temenuzhka Petkova, Finance Minister (January 23, 2025): "For the first quarter of 2025, the generated deficit will be 3.634 billion BGN. I can say that this result is due to the irrational management of public finances over the past three years."
The result was used to decide on the withdrawal of the budget proposed by the caretaker government.
Rosen Zhelyazkov, Prime Minister (January 23, 2025): "This is based on the picture we have already from the report for January 2025, as well as the data published by Eurostat, which allows us to make a more accurate assessment."
Today, the opposition expressed doubts about the calculations and criticized the Zhelyazkov cabinet for the dismissal of Deputy Finance Minister and former caretaker Minister Lyudmila Petkova.
Nikolai Denkov (WCC-DB): "And here came the surprises – on Monday, the results from the Ministry of Finance should have been released regarding the January performance. Today is Wednesday, and they are still missing. Instead, the former Deputy Minister, who knows best what has been going on, had to leave. It may turn out that the deficit, which was supposed to be 400 million, has actually turned into a surplus."
The leader of GERB, Boyko Borissov, supported Temenuzhka Petkova’s decision to part ways with her deputy.
Boyko Borissov, GERB Leader: "I support Temenuzhka Petkova's decision to part with her deputy, because if, after a year as deputy minister, you don’t know what your finances are, and every question is answered with ‘we still need more data’, I think there's no helping her."
The Ministry of Finance remained silent today on the budget execution. However, a new version of the 2025 budget is expected to be presented.
So far, it is known that expenditures will be reduced from 46% of GDP to 40%, and the deficit will be 3%. Prime Minister Rosen Zhelyazkov has not yet commented on which expenses will be cut.
Rosen Zhelyazkov, Prime Minister: "The measures will be announced after they receive approval from the coalition partners. At the moment they have been announced to BSP-United Left and There is Such a People."
The leader of GERB hinted that the government might withdraw its promise of a 9% VAT for restaurateurs.
Boyko Borissov, GERB Leader: "I asked them if it was a private matter or if we could join, but it’s private. Yesterday, at the council, we talked with our coalition partners about making compromises and concessions. What entered the hall with a 3% deficit should leave the hall with that same figure. So, there are painful violations, and compromises need to be made by everyone. You see, those who used to accuse us of giving away old Soviet equipment – today we have 380-390 million BGN from Denmark specifically for this equipment. For increasing the combat capability of the army. It turns out that the German missiles will come to us as barter. The government has our full support to finish this work."
The measures in the budget have already been presented to the BSP and 'There is Such a People' for agreement. The final budget text is expected to be presented in ten days.
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