02.08.2021

Based on the preliminary data and estimates, the Consolidated Fiscal Programme (CFP) budget balance as of July 2021 is expected to be positive, amounting to BGN 731 million.

The improvement in the budget balance for July is considerable and is due, on the one hand, to an improvement in the revenue side, and, on the other hand, to a transaction related to the recovery of state budget funds from the foreign fund account of the Ministry of Regional Development and Public Works, which is a refunded expenditure in itself and is recorded as a reduction of state budget expenditures on a cash basis.

Key CFP parameters based on preliminary data and estimates:

As of July 2021, CFP revenues, grants and donations are expected to be BGN 29,265.1 million, (61.5% of the annual estimates), registering a growth by BGN 4.0 million as against the same period of 2020. Tax and non-tax revenues grow by BGN 4.3 billion, while grant proceeds decrease by BGN 0.3 billion.

The Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, are expected to amount to BGN 28,534.1 million as of July 2021, which accounts for 54.4% of the annual estimates. For comparison, CFP expenditures for the same period of 2020 amount to BGN 23,542.7 million. The considerable growth of expenditures as of July 2021, as compared to the same period of the previous year, is related, on the one hand, with the lower base in 2020 when considerably smaller expenditures for fighting COVID-19 were reported, while as of July 2021 those expenditures are considerable, and, on the other hand, with the income and social policies and the higher administration costs set in the Law on the 2021 State Budget of the Republic of Bulgaria.

Looking from the perspective of economic elements, there is a considerable growth in the social and health insurance expenditures. As to pension expenditures, around BGN 740 million have been spent for a monthly allowance of BGN 50 to the pensions of all pensioners for January through July. In parallel to that pension expenditures are also influenced by the increased amount of the minimum old-age pension and of the maximum pension as from the start of the year, the baseline effect of the pension increase in July 2020, as well as the increase in July 2021. There is an increase in health insurance expenditures related to higher expenses for tackling the pandemic and arrangements for financing health establishments in the context of the emergency epidemic situation, including expenses for medicines, tests, protective equipment, expenditures supporting front-line staff in the fight against COVID-19 (supplementary monthly remuneration of BGN 1,000), payment to medical staff for vaccination of the population against COVID-19, monthly allowance of BGN 600 for doctors, BGN 360 for nurses and midwives and BGN 120 for hospital attendants, etc. The payments under the 60/40 measure, the 80/20 measure, the Keep Me measure, the Turnover Support For SMEs Affected by the Temporary Anti-Epidemic Measures measure administered by the NRA, etc. have contributed to the growing subsidy expenses for non-financial enterprises. Capital expenditures have also increased in comparison to the same period of the previous year, which is due to payments related to investment projects of the Bulgarian army, road infrastructure sites, etc.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of July 2021, amounts to BGN 863.5 million, which complies with the existing legislation in the area of EU own resources.

The statistics and the Information Bulletin on the Execution of the State Budget and the key Consolidated Fiscal Programme indicators based on the monthly data on cash execution of first-level spending units as of July 2021 will be published on the website of the Ministry of Finance at the end of August 2021.