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Bulgaria has made substantial progress toward long-term macroeconomic stability. Growth has been re-established, per capita income has improved, inflation has remained low, poverty has been reduced, and the external debt to GDP ratio has declined. Furthermore, the share of the private sector in the economy is increasing, major regulatory reform is underway, the banking sector is on more solid footing, and energy pricing reforms are improving efficiency, and reducing the fiscal burden. The objective of this country study is to detail policies and institutional issues to help improve the efficiency and effectiveness of public expenditures in Bulgaria. This book evaluates fiscal sustainability and analyzes efficiency and effectiveness of public expenditures and their institutional framework. The report argues that important challenges still lie ahead. Bulgaria must continue to maintain macroeconomic stability, make progress on structural reforms to sustain growth momentum, and attain further reductions in poverty and unemployment.

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