29.07.2022

Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) budget balance on a cash basis as of June 2022 is positive, amounting to BGN 1,179.6 million, or 0.8% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 832.6 million under the national budget and of BGN 347.0 million under EU funds. On a monthly basis, the excess of revenues over expenditures for June is BGN 574.5. The improvement in the budget stance for this month is mostly due to the higher proceeds related to the deadline for submission of the annual tax return for 2021 under the Corporate Income Tax (30 June) and the payment of the corporate tax, the tax on expenditures, the tax on the income of budget enterprises and the tax on shipping activities. The proceeds from indirect taxes, grants (mostly EU programme and fund grants), etc. also have a positive influence on the growth of revenues.

CFP revenues, grants and donations as of June 2022 amount to BGN 28,247.5 million, or 47.3% of the revised annual estimates^[1]. Proceeds grow by BGN 3,486.4 million, or by 14.1% compared to those reported in June 2021. Tax and non-tax CFP revenues grow by BGN 3,319.7 million in nominal terms, while grant and donation proceeds (mostly EU programme and fund grants) are by BGN 166.7 million more than those reported for the same period of the previous year.

CFP tax proceeds, including revenues from social security contributions, total BGN 22,238.7 million, which accounts for 48.2% of the tax revenues planned for the year. Tax and social security contribution proceeds grow by BGN 2,992.3 million (15,5%) compared to those reported for the same period of the previous year, forming 78.7% of the overall CFP proceeds for the period.

Direct tax revenues amount to BGN 4,311.2 million, or 47.6% of those planned for the year. Indirect tax proceeds amount to BGN 10,549.9 million (47.4% of the annual estimates), with VAT proceeds amounting to BGN 7,548.2 million (47.1% of those planned), excise duty revenues amounting to BGN 2,758.0 million (47.4% of the estimates), and customs duty proceeds amounting to BGN 218.5 million (57.5% as against the annual estimates). Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 914.1 million, or execution of 65.2% of the annual estimates. Revenues from social security and health insurance contributions are BGN 6,463.6 million, which accounts for 48.3% of the estimates for the year.

Non-tax revenues amount to BGN 4,591.7 million and are formed mostly from state, municipal and legal expense revenues, rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation proceeds amount to BGN 1,417.1 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 27,067.8 million as of June 2022, which accounts for 41.1% of the annual estimates. For comparison, the CFP expenditures as of June 2021 amount to BGN 24,645.0 million.

Non-interest expenditures amount to BGN 25,866.4 million, which accounts for 41.0% of the annual estimates. Non-interest current expenditures amount to BGN 24,354.7 million. Capital expenditures (including net increment of state reserve) amount to BGN 1,498.7 million. The current and capital transfers to other countries amount to BGN 13.1 million. Interest payments amount to BGN 388.7 million, or 58.5% of those planned for 2022.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30.06.2022, amounts to BGN 812.8 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 30.06.2022 is BGN 9.5 billion, including BGN 9.1 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.4 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 30 June 2022 are published in the Statistics section on the website of the Ministry of Finance. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.

^[1] Estimates to the 2022 State Budget of the Republic of Bulgaria Law (State Gazette, issue 18 of 4.3.2022, amended and supplemented in issue 52 of 5.7.2022 of the State Gazette).