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This work is a Public Expenditure and Institutional Review (PEIR) on Bulgaria by the World Bank. The objective of this Country Study is to outline policies and institutional issues to improve the efficiency and effectiveness of public expenditures in Bulgaria. It assesses fiscal sustainability and analyzes the efficiency and effectiveness of public expenditures and their institutional framework. Bulgaria has made substantial progress toward long-term macroeconomic stability, but important challenges remain in the five sectors analyzed - education, health, social protection, the state railways, and energy sectors. It also covers the institutional challenges in public expenditure management.