29.02.2016

Based on the monthly data of first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-January 2016 is positive, amounting to BGN 991.6 million, or 1.1% of the projected GDP, and is formed by a national budget surplus of BGN 811.1 million and a deficit of EU funds of BGN 180.5 million. For comparison, a CFP deficit of BGN 69.1 million (0.1% of GDP) was reported in January 2015, which means that, as a relative share of GDP, the budget stance has improved by 1.0 percentage point. The improvement in the budget stance is due both to the higher revenues and grants and to the lower CFP expenditures as compared to the same period of the previous year. The revenue growth of 26.7% for the first month of 2016 considerably outstrips the growth rates reported in January 2015 as against 2014 (19.3%) and in January 2014 as against January 2013 (15.8%, respectively).

The CFP revenues and grants in January 2016 stand at BGN 3,130.3 million, or 9.5% of the annual estimates. Compared to the previous year, revenues and grants have risen by BGN 658.7 million, or by 26.7%.

The tax proceeds, including revenues from social security contributions, total BGN 2,568.3 million, which accounts for 9.9% of the revenues planned for the year. Compared to January 2015, tax proceeds have risen in nominal terms by BGN 395.9 million, or by 18.2%. In structural terms, the proceeds from indirect taxes report the most considerable growth.

The direct tax revenues amount to BGN 245.9 million, or 5.2% of those planned in the 2016 State Budget of the Republic of Bulgaria Law, being by BGN 11.1 million, or 4.3%, less than in the first month of 2015. In January 2016, some growth is reported for PIT and CIT revenues, while the revenues from dividend taxes, liquidation quotas and income of resident and non-resident legal persons are lower than in the first month of 2015.

Revenues from indirect taxes amount to BGN 1,737.4 million, which accounts for 13.1% of the 2016 State Budget of the Republic of Bulgaria Law estimates, growing by BGN 393.2 million (29.3%) in comparison to the previous year. The VAT proceeds amount to BGN 1,155.5 million, or 13.7%, of those planned for the year. As compared to the previous year, the VAT revenues have risen by 180.3 million. The amount of the non-refunded VAT as of end-January is BGN 134.4 million. There is a growth of the excise duty revenues which amount to BGN 565.4 million, or 12.1% of the annual estimates, growing by BGN 213.0 million, or by 60.4%, as against April 2015. The increase in the excise duty proceeds reported in January 2016 as against January 2015 is mainly due to the growth in the excise duty of the tobacco products released for consumption in December 2015 for which the rates valid in 2015 apply. The customs duty proceeds amount to BGN 13.1 million, or 8.7% of the estimates for the year.

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 45.8 million, or 5.0% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 539.2 million, or 7.6% of the estimates for the year. Compared to the previous year, the revenues from social security contributions have risen by BGN 13.1 million, or by 2.5%, in nominal terms.  

Non-tax revenues amount to BGN 342.4 million, or 7.6% of the annual estimates. 

Proceeds from grants received domestically or from abroad, including EU grants, amount to BGN 219.6 million, which accounts for 8.6% of the annual estimates.

The Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget for January 2016, amount to BGN 2,138.8 million, which accounts for 6.1% of the annual estimates. For comparison, the CFP expenditures for January 2015 amount to BGN 2,402.5 million.

Non-interest expenditures amount to BGN 2,021.8 million, which accounts for 6.2% of the annual estimates. The non-interest current expenditures for January 2016 amount to BGN 1,964.5 million, 7.4% of the annual estimates, capital expenditures (including net increment of state reserve) amount to BGN 57.3 million, or 0.9% of the 2016 State Budget of the Republic Bulgaria Law estimates. Interest payments amount to BGN 95.1 million, or 11.9% of those planned for 2016.

The part of Bulgaria's contribution to the EU budget, as paid from the central budget in January 2016, amounts to BGN 21.9 million, which complies with the existing legislation in the area of EU own resources, Council Decision 2007/436/EC, Euratom on the system of the Communities' own resources and Council Regulation No 1150/2000, as amended by Regulation No 2018/2004, Regulation No 105/2009 and Regulation No 1377/2014, implementing Decision 2007/436/EC.

The fiscal reserve as of 31.01.2016 is BGN 9.2 billion, including BGN 7.2 billion of deposits in BNB and in banks and BGN 1.95 billion of receivables under the EU Funds for certified expenditure, advance payments, etc.

Consolidated Fiscal Programme implementation data as of 31 January 2016 are published on the website of the Ministry of Finance, in Statistics section.