31.08.2012

The budget balance under the Consolidated Fiscal Programme (CFP) as of end-July 2012 reports a surplus of BGN 138.4 million on a monthly basis. The key factor for this surplus is the higher proceeds from the operational programmes of the European Union. At the end of July 2012, the European Commission refunded part of the funds under the European programmes that were expected to be refunded in August. The preliminary estimates for August show a deficit of around BGN 122.0 million, with the budget stance for the eight months of 2012 being preserved around the half-year level.

Cumulatively, the budget balance under the Consolidated Fiscal Programme (CFP) as of end-July 2012 is positive, amounting to BGN 200.3 million, against a deficit of BGN 720.5 million as of July 2011, and is formed by a surplus under the national budget of 521.1 million and a deficit under EU funds of BGN 320.7 million. Compared to the same period of last year, the budget balance on a cash basis has improved by BGN 920.9 million (1.2 pp of GDP).

At end-July CFP revenues and grants stand at BGN 15,598.2 million or 54.3 % of those planned in the 2012 State Budget Law. Compared to the revenue reported in the same period of 2011, CFP proceeds report a nominal growth by BGN 1,479.4 million or 10.5%. This is mostly due to higher indirect tax, non-tax and grant revenue.

Tax proceeds, including revenues from social security contributions, total BGN 12,422.1 million as of end-July, which is 57.5 % of the annual plans. Revenues from direct taxes are BGN 2,413.3 million, or 62.9 % of those planned for the year. Indirect tax revenues amount to BGN 6,353.6 million, or 55.9 % of those planned in the 2012 State Budget Law, of which VAT revenues amounting to BGN 4,062.4 million, or 57.2 % of the plans, excise duty revenues amounting to BGN 2,206.0 million, or 53.4 % of the plans, customs duty revenues amounting to BGN 69.6 million, or 58.0 % of the plans, and insurance premium tax revenues amounting to BGN 15.6 million, or 65.2 % of the plans. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 508.9 million, or 61.7 % of the plans for the year. Revenues from social security and health insurance contributions as of 31 July 2012 are BGN 3,146.4 million, or 56.6 % of those planned for the year.

Non-tax revenues and grants amount to BGN 3,176.1 million, or 44.4 % of those planned for the year.

The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31 July 2012 amount to BGN 15,397.9 million, or 51.6 % of the planned for the year. In structural terms, compared to the same period of 2011, capital expenditures and social security expenditures are mostly higher. Non-interest current expenditures amount to BGN 12,805.8 million (56.8 % of those planned for the year), capital expenditures (including net increment of state reserve) amount to BGN 1,607.1 million (30.2 % of those planned), while interest payments - to BGN 481.3 million (67.1 % of those planned in the 2012 budget).

The part of Bulgaria\'s contribution to the EU budget, as paid as of end-July 2012 from the central budget, amounts to BGN 503.7 million, which complies with Council Regulation 1150/2000.

Fiscal reserve as of 31 July 2012 amounts to BGN 7.1 billion.

Data on consolidated budget implementation as of 31 July 2012 are published in \"Statistics\" section on the website of the Ministry of Finance. The statistical data are accompanied by an Information Bulletin on the Execution of the Consolidated Budget, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.