April 13 (SeeNews) - Bulgaria's budget is expected to be in deficit of 3% of the gross domestic product (GDP) on average in the period 2023-2025, without taking into account the effect of COVID-19 measures, the finance ministry said.
The budget deficit is expected to fall to 2.8% of GDP in 2025 from 3.3% expected in 2023, with COVID-19 measures included, according to a medium-term macroeconomic forecast of the finance ministry published on its website.
The forecast has already been approved by the government, the finance ministry said.
Bulgaria's consolidated budget was in deficit of 3.9 million levs ($2.2 million/2.0 million euro) at the end of last year, equivalent to 3.0% of the estimated 2021 GDP, the finance ministry said earlier this year.
The easing of the country's fiscal policy planned in recent years, prompted by economic, health, social, and external challenges, is expected to continue this year, the finance ministry said in its macroeconomic forecast.
With measures aimed at alleviating the economic impact of the pandemic taken into account, the 2022 budget deficit is seen at 4% of GDP, according to the forecast.
Budget revenue is expected to be equivalent to 39% of GDP, or 62.8 billion levs in 2023, 37.8% of GDP, or 65.4 billion levs in 2024, and 36.2% of GDP, or 66.4 billion levs in 2025.
Expenditures are seen at 32.3% of GDP in 2023, or just over 68 billion levs, 40.8% of GDP in 2024, or 70.5 billion levs, and 39% of GDP in 2025, or over 71.5 billion levs.
In 2022, budget revenues are expected to amount to 57.2 billion levs, equivalent to 38.8% of GDP, while expenditures are seen at 63.1 billion levs, or 42.8% of GDP.
During the 2023-2025 period, the trend of increasing debt will be maintained, the finance ministry said, adding that it expects 54.2 billion levs of government debt by the end of 2025. The ratio of government debt to GDP is expected to continue rising to 26.4% in 2023, 28% in 2024, and 29.5% by the end of 2025.
(1 euro = 1.95583 levs)