30.11.2020

Based on the monthly data on cash execution of first-level spending units, CFP revenues, grants and donations as of October 2020 amount to BGN 36,260.5 million, or 81.7% of the annual estimates^[1]. Compared to the same period of the previous year, they decrease by BGN 58.0 million in nominal terms. Tax and non-tax proceeds register a drop by BGN 461.0 million (1.3%), and grant and donation proceeds (mostly EU programme and fund grants) are by BGN 403.0 million, or 22.6%, more than at end-October 2019.

Tax proceeds, including revenues from social security contributions, total BGN 29,248.3 million, which accounts for 83.8% of the tax revenues planned for the year. Direct tax revenues amount to BGN 5,161.0 million, or 78.4% of those planned for the year. Indirect tax proceeds amount to BGN 14,014.7 million (85.9% of the annual estimates), with VAT proceeds amounting to BGN 9,199.4 million (86.5% of those planned), excise duty revenues amounting to BGN 4,596.7 million, (84.3% of the estimates), while customs duty proceeds amounting to BGN 176.1 million (94.0% of the annual estimates). Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 1,043.4 million, or 86.3% execution of the annual estimates. Revenues from social security and health insurance contributions are BGN 9,029.3 million, which accounts for 83.6% of the estimates for the year.

Non-tax revenues amount to BGN 4,825.4 million, or 71.1% of the annual estimates, while grant and donation proceeds amount to BGN 2,186.8 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for October 2020, amount to BGN 35,606.2 million, which accounts for 74.3% of the annual estimates. For comparison, CFP expenditures as of October 2019 amount to BGN 35,236.0 million. Compared to the same period of the previous year, CFP expenditures grow by BGN 370.2 million, with some increase reported in the part of current non-interest expenditures which is partially set off by a decrease in capital expenditures. The higher expenditures are related to some social and economic measures aimed at minimising the implications from the crisis, including payments under the 60/40 measure, payment of a monthly allowance of BGN 50 to the pensions of all pensioners for the August – October period, payments to farmers, as well as some other expenditures under the measures approved. Comparing the capital expenditures with those in the same period of the previous year, one should take into account the impact of the one-off expenditures incurred for the implementation of the project for the acquisition of a new type of military aircraft for the Bulgarian Air Forces in 2019. Compared to the same period of the previous year, there is a nominal increase in social payments, staff costs, subsidy expenditures, etc., where the majority of the costs related to the socio-economic measures tackling the pandemic have been reported.

Non-interest expenditures amount to BGN 33,055.1 million, which accounts for 74.7% of the annual estimates. Non-interest current expenditures as of October 2020 amount to BGN 31,051.5 million, capital expenditures (including net increment of state reserve) amount to BGN 2,970.4 million. The current and capital transfers to other countries amount to BGN 33.2 million. Interest payments amount to BGN 560.8 million, or 77.4% of those planned for 2020.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31.10.2020, amounts to BGN 990.2 million, which complies with the existing legislation in the area of EU own resources, i.e. Council Decision 2014/335/EU on the system of own resources of the European Union, Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union and Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements, as amended by Council Regulation (EU, Euratom) 2016/804 of 17 May 2016.

The CFP budget balance on a cash basis as of 31 October 2020 is negative, amounting to BGN 654.3 million, or 0.5% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 466.4 million under the national budget and of BGN 187.9 million under EU funds.

As of 31.10.2020, the fiscal reserve amounts to BGN 13.2 billion, including BGN 13.1 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.1 billion of receivables under the EU Funds for certified expenditure, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 31 October 2020 are published on the website of the Ministry of Finance, in Statistics section. 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 Law amending the 2020 State Budget of the Republic of Bulgaria Law (promulgated in the State Gazette, issue 34/2020, effective as from 9.4.2020).