01.09.2023

Based on data from the monthly reports on the cash performance of the budgets of first-level spending units, the balance of the Consolidated Fiscal Programme (CFP) on a cash basis as of end-July 2023 is positive, amounting to BGN 455.3 million (0.2 % of forecast GDP) and is formed by an excess of revenues over expenditures under the national budget of BGN 423.2 million and under EU funds of BGN 32.1 million. The improvement in the budget position continues in July and is mainly driven by the revenue side of the budget.

The CFP revenues, grants and donations as of July 2023 are to the amount of BGN 37,512.1 million, or 54.0 % of the annual estimates^[1]. Proceeds have increased by BGN 3,678.2 million (10.9 %) compared to those reported as of July 2022. Tax and non-tax proceeds under CFP rise by BGN 4,103.1 million in nominal terms, while proceeds from grants and donations (mostly EU programme and fund grants) are by BGN 424.9 million less as compared to the amount reported for the same period of the previous year.

Tax proceeds (including revenues from social security and health insurance contributions) are to the amount of BGN 28,865.7 million, or 54.3 % of those planned for the year. Proceeds from taxes and social security and health insurance contributions have grown by BGN 2,750.7 million (10.5 %) compared to those reported for the same period of the previous year, forming 77.0 % of the overall CFP proceeds for the period. Revenues from direct taxes amount to BGN 6,047.8 million, or 52.0 % of the annual estimates for 2023. Proceeds from indirect taxes (mostly VAT) amount to BGN 12,219.9 million (52.2 % of the annual estimates). Proceeds from other taxes (including other taxes under the Corporate Income Tax Law, property taxes, etc.) amount to BGN 1,854.9 million (including BGN 696.1 million targeted contributions to the Electricity System Security Fund), or 69.6 % of the annual estimates. Proceeds from social security and health insurance contributions amount to BGN 8,743.1 million, or 56.5 % of the estimates for 2023.

Non-tax revenues amount to BGN 7,165.1 million, which accounts for 64.2 % 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 1,481.3 million.

The expenditures under the CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 37,056.8 million as of July 2023, which is 50.0 % of the annual estimates. In nominal terms, expenditures have increased by BGN 4,741.8 million compared to the first half of 2022 (14.7 %). The most significant increase in the individual expenditure indicators is recorded in terms of pension expenditures, as well as in the part of staff and capital expenditures, etc. The growth in expenditures results from enacted legal acts, including changes in the area of pensions, payment of liabilities under the budget of the Ministry of Regional Development and Public Works, enforceable higher amounts of remuneration in a number of administrations, etc. 

Non-interest expenditures amount to BGN 35,686.0 million, which is 50.4 % of the annual plan. Non-interest current expenditures amount to BGN 32,943.3 million. Capital expenditures (including net increment of state reserve) amount to BGN 2,701.7 million. The current and capital transfers to other countries amount to BGN 41.0 million. Interest payments amount to BGN 380.6 million, or 46.2 % of those planned for 2023.

The part of Republic of Bulgaria's contribution to the EU budget, paid from the central budget as of 31 July 2023, amounts to BGN 990.3 million, which complies with the current legislation in the area of EU own resources.

Fiscal reserve as of 31.07.2023 is BGN 13.1 billion, including BGN 12.6 billion fiscal reserve deposits in BNB and banks and BGN 0.5 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

The Consolidated Fiscal Programme performance data as of 31 July 2023 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 2023 State Budget of the Republic of Bulgaria Law (prom., SG No 66 of 1 August 2023).