04.05.2020

Based on the preliminary data and estimates, as of April 2020, the excess of revenues over expenditures under the Consolidated Fiscal Programme (CFP) is expected to amount to BGN 1,587.1 million (1.4 % of the forecast GDP). For comparison, the reported excess of revenues over expenditures for the same period of 2019 amounted to BGN 2,699.8 million (2.3 % of GDP), which means that, as compared to 2019, the budget balance has deteriorated by BGN 1.1 billion in nominal terms. Revenues report a slowdown due to the negative effects of the crisis as well as to the extension of the deadlines under the Corporate Income Tax Law and the Local Taxes and Fees Law in connection with the measures to limit and combat COVID-19 in Bulgaria and the global pandemic. Compared to the first fourth months of 2019, as of April 2020, tax and non-tax revenues under the Consolidated Fiscal Programme contract by BGN 875.8 million, while proceeds from grants increase by BGN 358.5 million. The negative trend is expected to continue in the next few months.

Key CFP parameters on the basis of preliminary data and estimates:

As of April 2020, CFP revenues, grants and donations are expected to be BGN 14,658.9 million (33 % of the updated annual estimates). Compared to the first fourth months of 2019, CFP revenues report a slowdown mainly in terms of corporate and other taxes, VAT on imports and revenues from fees.

The Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, as of April 2020 amount to BGN 13,071.8 million, which accounts for 27.3 % of the updated annual estimates. For comparison, the expenditures under the CFP as of April 2019 amounted to BGN 12,476.5 million. As compared to the same period of the previous year, the nominal increase is mainly due to the higher staff costs, the higher social payments (a baseline effect from the increase of pensions as from July 2019), the higher capital expenditures, etc.

The part of Bulgaria's contribution to the EU budget, paid from the central budget as of 30.04.2020, amounts to BGN 474.1 million, which complies with the current legislation in the area of EU own resources – Council Decision 2014/335/EU, Euratom 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) No 2016/804 of 17 May 2016.

The statistical data and the Information Bulletin on the execution of the state budget and the key indicators of the Consolidated Fiscal Programme based on data from the monthly reports on the cash performance of the budgets of the first-level spending units as of April 2020 will be published on the website of the Ministry of Finance at the end of May 2020.