Public spending on pensions – challenges and risks (the situation in Bulgaria)

In 2020, the public expenditure on pensions in Bulgaria was BGN 9,736.46 million. For the first 6 months of 2024 alone, it was BGN 10 202,4 million. On this basis, the article asks whether the Bulgarian pension system has the ability to withstand such pressures and how this will affect the overall fiscal system. In light of the shrinking funding base and increased costs, it is clear that a significant deficit will have a negative impact not only on the sustainability of the public pension system, but also on public finances in the country as a whole. Therefore, the purpose of the study is to present a picture of the pension obligations of the Bulgarian pension system compared to those of the EU. Some of the main risks it faces and what the possibilities are in this direction are explored.