01.02.2017

Based on preliminary data and estimates the balance of the Consolidated Fiscal Programme (CFP) on a cash basis for January 2017 is expected to be positive, amounting to BGN 867.3 million (0.9% of forecast GDP). For comparison, a CFP surplus of BGN 991.6 million (1.1% of GDP) was reported for January 2016. It should be noted that in the first half of 2016 we received significant amount of EU grants representing reimbursed expenses under EU programmes actually made at the end of 2015, which in turn had relation to the deadlines for making final payments to contractors under projects from the previous 2007 - 2013 programming period. For this reason, if compared to the same period of 2016, proceeds from EU grants are lower for January 2017 which, all other terms being equal, is also reflected in lower excess of revenues over expenditures under CFP for the month.

Key CFP parameters on the basis of preliminary data and estimates:

For January 2017, CFP revenues and grants are expected to be BGN 3,326.7 million (9.4% of the annual estimate), registering a growth by BGN 196.4 million as against January 2016. The growth as compared to the previous year is mainly due to the higher tax and non-tax revenues which increased by BGN 265.8 million (9.1%), while proceeds from grants were lower.

The Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, for January 2017 amount to BGN 2,459.4 million, which accounts for 6.7% of the annual estimates. Compared to the same period of the previous year, CFP expenditures registered growth mostly due to the higher social security and health insurance payments, a baseline effect on expenditures on pensions from their increase as from July 2016, expenditures on subsidies and growth of insurance payments related to the higher insurance contribution for the Pensions for Persons under Article 69 Fund which increased by 20 percentage points as compared to 2016.

The part of Bulgaria's contribution to the EU budget, as paid from the central budget as of 31.01.2017, amounts to BGN 71.3 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 statistical data and the Information Bulletin on the execution of the state budget and the key indicators of the Consolidated Fiscal Programme based on data from the monthly reports on the cash performance of the budgets of the first-level spending units will be published on the website of the Ministry of Finance at the end of February 2017.