The concept of reference budgets and its application in the social policy of Bulgaria

Background and aim: This study examines the concept of reference budgets and their integration into Bulgaria's social policy to combat poverty, promote social inclusion, and modernize welfare systems in alignment with EU standards. The research explores the potential of reference budgets as tools for policy development. Scope: The study acknowledges data limitations, regional disparities, and restricted participatory methodologies in Bulgaria. Methods: A comprehensive review of theoretical frameworks, empirical data from national and EU sources, and expert-driven approaches to constructing reference budgets was conducted, with specific focus on their application in Bulgaria. Results: Findings highlight that while reference budgets have been partially applied in welfare programs, such as the Minimum Income Guarantee, challenges persist due to inadequate data granularity, limited resources, and political barriers. Case studies illustrate how reference budgets have informed regional policies but reveal gaps in implementation. Conclusions: Reference budgets can significantly enhance the accuracy of poverty assessment and the effectiveness of social assistance schemes. However, overcoming methodological and institutional challenges is crucial for their broader adoption. Originality: The study underscores the novelty of employing reference budgets in Bulgaria, contrasting its narrower application with more participatory approaches in other EU countries. Practical implications: Policymakers can leverage reference budgets to address regional disparities, align social assistance with real living costs, and promote inclusive welfare reforms in Bulgaria.