31.10.2017

Based on the monthly data of first-level spending units, the CFP balance on a cash basis as of September 2017 is positive, amounting to BGN 2,420.9 million (2.4 % of forecast GDP) and is formed by a surplus under the national budget of BGN 2,482.1 million and a deficit under EU funds of BGN 61.2 million. The national budget balance reports an improvement in structural terms as compared to the same period of 2016 mainly due to the growth of tax revenues (including social security and health insurance contributions), while the balance of EU fund accounts has deteriorated this year due to a baseline effect in 2016 related to the EU grants reimbursed to Bulgaria at the beginning of 2016 for expenditures incurred at the end of 2015 which witnessed the peak of project payments under the previous 2007 – 2013 programming period.

The CFP revenues and grants as of September 2017 stand at BGN 26,151.5 million, or 73.8 % of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues have grown by BGN 1,774.9 million, (7.6 %), while proceeds from grants were lower.

Tax proceeds, including revenues from social security and health insurance contributions, total BGN 21,856.5 million, which is 78.0 % of the annual plans. Compared to the data for September 2016, tax revenues have risen by 8.7 % (BGN 1,750.1 million) in nominal terms.

Revenues from direct taxes amount to BGN 3,885.0 million, or 76.3 % of the annual estimates, growing, as compared to same period of the previous year, by BGN 310.4 million (8.7 %).

Indirect tax revenues amount to BGN 11,028.2 million, or 78.7 % of the annual plans. Compared to the data for September 2016, revenues in this group have grown by BGN 643.4 million (6.2 %). The VAT proceeds amount to BGN 7,137.5 million, or 81.3 % of the plan. Compared to the previous year, VAT revenues have risen by BGN 523.2 million. (7.9 %). The amount of the non-refunded VAT as of 30.09.2017 is BGN 60.1 million. The excise duty revenues amount to BGN 3,724.9 million, (73.9 % of the annual estimates). Custom duties revenues are BGN 141.0 million or 84.9 % of the annual plan.

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 815.6 million, or 82.3 % performance of the annual estimates.

Revenues from social security and health insurance contributions are BGN 6,127.6 million, or 77.2 % of those planned for the year. Compared to the same period of the previous year these revenues have risen by 14.2 % (BGN 760.9 million) in nominal terms. 

Non-tax revenues amount to BGN 3,245.2 million or 68.2 % of the annual plans.

Proceeds from grants amount to BGN 1,049.8 million or 39.7 % of the annual plan.

The expenditures under the CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 23,730.5 million as of September 2017, which is 64.5 % of the annual estimates. For comparison, the expenditures under the CFP for the same period of 2016 amounted to BGN 22,289.6 million. The growth of expenditures as compared to end-September 2016 is mostly due to the higher social security and health insurance payments, a baseline effect on expenditures on pensions from their increases as from July 2016 and July 2017, higher expenditures on subsidies and higher personnel expenditures, including due to the 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.

Non-interest expenditures amount to BGN 22,327.3 million, which is 64.6 % of the annual plans. Non-interest current expenditures as of September 2017 amount to BGN 20,951.7 million, or 73.9 % of the annual plans, capital expenditures (including net increment of state reserve) amount to BGN 1,375.6 million, or 22.2 % of the 2017 Annual Budget Law plans. Interest payments amount to BGN 726.6 million, or 87.9 % of those planned for 2017.

The part of Bulgaria's contribution to the EU budget, paid from the central budget as of 30.09.2017, amounts to BGN 676.6 million, which complies with the current legislation in the area of EU own resources – Council Decision 2014/335/EU, Euratom on the system of own resources of the European Union, Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union, and Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements as amended by Council Regulation (EU, Euratom) No 2016/804 of 17 May 2016.

Fiscal reserve as of 30.09.2017 is BGN 11.9 billion, including BGN 11.4 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 30 September 2017 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.