Danish Budget Rule Could Save BGN 625M

If Denmark’s automatic budget prioritisation rule were applied in Bulgaria, it could save the country’s treasury nearly BGN 625 million in 2025, according to an analysis by the Bulgarian Fiscal Council, CE Report quotes BTA

The measure, introduced in Denmark in 2016, mandates an annual 2% cut in operating costs across central government bodies, with the savings redirected to priority areas like defence. It excludes social programmes and municipal services, and in later years, Denmark also exempted cultural and educational institutions.

In Bulgaria, where central government operational spending is projected at BGN 31.2 billion for 2025, a similar 2% cut would save BGN 624.9 million. If culture and education are excluded, savings would still total BGN 561.2 million, the report says.

The Fiscal Council notes the measure encourages efficiency without targeting specific programmes, but warns that its cumulative impact diminishes over time due to expanding exemptions.