Bulgaria traditionally spent less on defense than other Warsaw Pact countries, but military spending was a greater burden on its economy than on those of its allies. During the late 1980s, the military budget amounted to more than 10 percent of the gross national product (GNP-- see Glossary) because Bulgaria had the lowest GNP in the Warsaw Pact. Measured in terms of total government spending, the military budget typically accounted for more than 20 percent of the national budget. In contrast, BPA leaders complained that by 1990 defense spending had dropped to about 6 percent of state expenditures, a smaller proportion than that spent by the governments of Greece or Turkey.

Between 1986 and 1989, the military budget increased gradually from 1.67 to 1.8 billion leva. In January 1989, however, the State Council and the Council of Ministers reduced the appropriated defense budget for 1989 by 12 percent to 1.6 billion leva. The announcement cited restructuring in the armed forces and economic considerations as reasons for the reduction. The Ministry of National Defense stated its intention to absorb the cut by reducing expenditures on operations, maintenance, and procurement, which were the largest components of the military budget.

Data as of June 1992