Bulgaria’s National Assembly has adopted the draft law on the state budget for 2025 at its second reading on 21 March 2025.
The 2025 budget proposes no tax increases and projects a deficit of 3% of the gross domestic product (GDP). It forecasts EUR 45.5 billion (BGN 90 billion) in revenues and EUR 48.6 billion (BGN 96 billion) in expenses. The government stated its debts are projected at EUR 31.22 billion (BGN 61.7 billion), with a borrowing limit of EUR 9.65 billion (BGN 18.9 billion) for 2025.
One key proposal of the 2025 budget was to maintain the reduced 9% VAT rate for restaurants and 0% VAT on bread, which was not approved.
Earlier, Bulgaria’s Ministry of Finance released a draft 2025 state budget on 9 December 2024, which included key proposals on tax policies, resource extraction, and VAT registration.
