Bulgaria budget deficit unlikely to exceed 5%, says BNB board member

Lyubomir Karimanski, a member of the Governing Board of the Bulgarian National Bank, expressed doubt that the national budget deficit will exceed 5% by the end of the year. He noted that as of August, the deficit stood at approximately 2.8%.

Karimanski attributed this projection to the limited capacity for the state to absorb capital expenditures. He argued that despite an increasing rhythm in investment absorption since the current government took office, the economy has a finite capacity for absorbing these funds. He suggested that the planned capital expenditures outlined in the budget are unlikely to be fully realized by year-end due to these absorption constraints.