30.10.2020

Based on data from the monthly reports on the cash performance of the budgets of the first-level spending units, the revenues, grants and donations under CFP as of September 2020 are to the amount of BGN 32,415.5 million, or 73.0 % of the annual estimates^[1].. Compared to the same period of the previous year, they have decreased by BGN 383.5 million in nominal terms. Tax and non-tax revenues register a drop by BGN 750.3 million (2.4 %), and grant and donation proceeds (mostly EU programme and fund grants) are by BGN 366.8 million, or 21.0 %, more compared to end-September 2019.

Tax proceeds, including revenues from social security and health insurance contributions, total BGN 25,990.6 million, which is 74.4 % of the annual plans. Revenues from direct taxes amount to BGN 4,607.3 million, or 70.0 % of the annual estimates. Indirect tax revenues amount to BGN 12,401.7 million, (76.0 % of the annual estimates), with VAT revenues amounting to BGN 8,108.6 million (76.2 % of the plans), excise duty revenues – to BGN 4,101.9 million (75.3 % of the estimates), and customs duty revenues – to BGN 156.6 million (83.6 % of the annual estimates). Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 941.9 million, or 77.9 % performance of the annual estimates. Revenues from social security and health insurance contributions are BGN 8,039.7 million, or 74.4 % of those planned for the year.

Non-tax revenues amount to BGN 4,311.2 million, or 63.6 % of the annual estimates, and proceeds from grants and donations amount to BGN 2,113.8 million.

The expenditures under the CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 31,544.1 million as of September 2020, which is 65.8 % of the annual estimates. The expenditures under the CFP as of September 2019 amounted to BGN 31,534.8 million. The amount of the expenditures for the nine months of 2020 is close to that for the same period of the previous year, with a decrease being registered mainly in the part referring to capital expenditures. When comparing the total amount of expenditures and capital expenditures with the same period of the previous year, one should bear in mind the effect in 2019 from the expenditures made for the implementation of the project for acquisition of a new type of military aircraft for the Bulgarian air force which are of a one-off nature. Compared to the same period of the previous year, there is a nominal increase in terms of social payments, staff costs, expenditures on subsidies, etc.

Non-interest expenditures amount to BGN 30,099.2 million, which is 66.1 % of the annual plans. Non-interest current expenditures as of September 2020 amount to BGN 27,352.2 million and capital expenditures (including net increment of state reserve) amount to BGN 2,716.2 million. The current and capital transfers to other countries amount to BGN 30.8 million. Interest payments amount to BGN 553.9 million, or 76.4 % of those planned for 2020.

The part of Bulgaria's contribution to the EU budget, paid from the central budget as of 30.09.2020, amounts to BGN 890.9 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 CFP budget balance on a cash basis as of 30 September 2020 is positive, amounting to BGN 871.4 million (0.7 % of the forecast GDP) and is formed by an excess of revenues over expenditures under the national budget of BGN 484.9 million as well as under EU funds of BGN 386.5 million.

Fiscal reserve as of 30.09.2020 is BGN 13.53 billion, including BGN 13.49 billion fiscal reserve deposits in BNB and banks and BGN 0.04 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

The Consolidated Fiscal Programme performance data as of 30 September 2020 are published on the website of the Ministry of Finance in Statistics section. The statistical data are accompanied by an Information Bulletin on the Execution of the State Budget and the main indicators of the consolidated fiscal programme, which presents 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 and supplementing the 2020 State Budget of the Republic of Bulgaria Law (prom., SG, 34 of 2020, in force from 09.04.2020).