Contemporary state administration is continuously challenged by the fast-changing national and international conditions. In modern states, administration on all levels of governance is continuously in the process of elaboration and adaptation to the changes that surround it. State administration does not exist for itself. It exists to serve the state and the society. Bulgaria's EU membership sets new higher standards for development to Bulgarian administrative system. In this context a priority task is building adequate administrative capacity both for realizing the set of reforms and effective maintaining of EU policies, and bettering the governance capacity of Community funding and securing a higher quality of administrative activity. Developing administrative capacity is an important requirement not only for the European administrative space membership, it is also a necessary condition for observing the principles of "good state governance" formulated in the White Book of the European Commission. Bulgaria aims at taking full-scale advantages from its membership in order to better its social-economic and societal development. In this context, the requirements involved as Community member face Bulgarian administrative system to ever bigger challenges. Therefore, the betterment of institutional and administrative capacity is of paramount significance for realizing the set of reforms and effective application of EU policies.