03.05.2022

Based on data from the monthly reports on the cash performance of the budgets of first-level spending units, the budget balance of the Consolidated Fiscal Programme (CFP) on a cash basis for the first quarter of 2022 is positive, amounting to BGN 298.0 million (0.2 % of forecast GDP), and is formed by an excess of revenues over expenditures under the national budget of BGN 344.7 million and a deficit under EU funds of BGN 46.7 million.

The CFP revenues, grants and donations for the first quarter of 2022 are to the amount of BGN 12,382.7 million, or 21.6 % of the annual estimates^[1]. Proceeds have increased by BGN 1,032.3 million (9.1 %) compared to those reported as of March 2021. Tax and non-tax proceeds under CFP rise by BGN 1,255.2 million in nominal terms, while proceeds from grants and donations (mostly EU programme and fund grants) decrease by BGN 222.9 million as compared to the amount reported for the same period of the previous year.

Tax proceeds under CFP, including revenues from social security and health insurance contributions, total BGN 9,875.0 million, which is 21.9 % of the annual plans. Proceeds from taxes and social security and health insurance contributions have grown by BGN 1,044.1 million (11.8 %) compared to those reported for the same period of the previous year, forming 79.7 % of the overall CFP proceeds for the period.

Revenues from direct taxes amount to BGN 1,247.4 million, or 13.6 % of the annual estimates. Indirect tax revenues amount to BGN 5,188.3 million (24.6 % of the annual estimates), with VAT revenues amounting to BGN 3,812.3 million (25,8 % of the plans), excise duty revenues – to BGN 1,263.5 million (21.4 % of the estimates), and customs duty revenues – to BGN 100.2 million (33.1 % compared to the annual estimates). Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 388.8 million, or 28.2 % performance of the annual estimates. Revenues from social security and health insurance contributions are BGN 3,050.5 million, or 22.8 % of those planned for the year.

Non-tax revenues amount to BGN 2,026.8 million, which accounts for 28.5 % of the annual estimates, and are mostly formed by revenues from state, municipal and legal fees, revenues from rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Proceeds from grants and donations amount to BGN 480.9 million.

The expenditures under CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 12,084.7 million for the first quarter of 2022, which is 19.1 % of the annual estimates. For comparison the expenditures under the CFP as of end-March 2021 amounted to BGN 11,976.3 million.

Non-interest expenditures amount to BGN 11,347.3 million, which is 18.7% of the annual plan. Non-interest current expenditures amount to BGN 10,603.9 million. Capital expenditures (including net increment of state reserve) amount to BGN 736.8 million. The current and capital transfers to other countries amount to BGN 6.6 million. Interest payments amount to BGN 335.6 million, or 50.5 % of those planned for 2022.

The part of Republic of Bulgaria's contribution to the EU budget, paid from the central budget as of 31.03.2022, amounts to BGN 401.8 million, which complies with the current legislation in the area of EU own resources.

Fiscal reserve as of 31.03.2022 is BGN 7.5 billion, including BGN 6.9 billion fiscal reserve deposits in BNB and banks and BGN 0.6 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

The Consolidated Fiscal Programme performance data as of 31 March 2022 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 2022 State Budget of the Republic of Bulgaria Law (prom., SG No 18 of 4 March 2022).