Bulgaria - Public finance

An annual budget for all levels of government, becoming effective on 1 January, is voted by the National Assembly, after having been prepared by the Ministry of Finance. The disintegration of the communist system in November 1989 and the subsequent collapse of the Soviet trade bloc caused severe economic disruption, pushing the government's budget deficit to 8.5% of GDP in 1990 (not including interest payments on commercial foreign debt). However, by the late 90s the country was seeing unprecedented growth (5.8% in 2000), due to agressive market reforms put in place by the government during the prior decade.

The US Central Intelligence Agency (CIA) estimates that in 2001 Bulgaria's central government took in revenues of approximately $5.6 billion and had expenditures of $5.7 billion. Overall, the government registered a deficit of approximately $110 million. External debt totaled $10.3 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


Tax revenue 73.0% 4,066
Non-tax revenue 22.5% 1,253
Capital revenue 0.7% 37
Grants 3.8% 214
E XPENDITURES 100.0% 5,680
General public services 6.6% 374
Defense 6.1% 346
Public order and safety 5.4% 308
Education 4.5% 254
Health 9.6% 548
Social security 35.5% 2,015
Housing and community amenities 1.9% 107
Recreation, cultural, and religious affairs 1.4% 80
Economic affairs and services 11.3% 644
Other expenditures 7.0% 396
Interest payments 10.7% 609

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