01.10.2014

The budget balance on a cash basis under the Consolidated Fiscal Programme (CFP) as of 31 August 2014 is negative, amounting to BGN 1,275.6 million and is formed by a deficit under the national budget of BGN 710.9 million and a deficit under EU funds of BGN 564.7 million. The faster growth of expenditure and the delay in planned tax revenue performance are the main factors for the formation of the CFP deficit for the first eight months of the year. Financing for the suspended by the EC payments under OP Environment and under two axes of OP Regional Development continues expecting that after the payments are resumed certified expenditure will be reimbursed. Compared to the deficit for the same period of 2013 (BGN 212.7 million) the budget position worsens by BGN 1,062.9 million (1.3 pp of GDP).

Consolidated revenues and grants under CFP for the reported period stand at BGN 19,215.1 million, or 61.1 % of the annual plans for 2014 under the State Budget Law. Compared to the same period of last year revenues under the CFP have risen by 1.2% (BGN 218.7 million) in nominal terms, the nominal growth planned in the 2014 State Budget Law compared to the reported for 2013 being 7.1% (BGN 2.1 billion).

At end-August2014 tax proceeds, including revenues from social security contributions, total BGN 15,122.6 million, which is 62.2% of the 2014 plans, while for the same period of 2013 this figure was 64.4%.. Compared to the same period of the previous year tax revenues under the CFP have risen by BGN 405.5 million in nominal terms (2.8%), but at the same time there is a considerable delay compared to the planned growth for the year compared to the reported proceeds for 2013 of 8.8%.

Revenues from direct taxes amount to BGN 2,849.4 million, or 66.0% of the annual plans, and are by 9.6% higher than the same period of 2013.

Indirect tax revenues amount to BGN 7,532.5 million, or 58.7% of the annual plans, while as of the end of August 2013 this figure was 63.6%. The underperformance of 4.9 pp compared to the reported performance for the previous year is mainly in VAT and excise duties. VAT revenues amount to BGN 4,845.7 million, or 58.5%; excise duty revenues - BGN 2,569.7 million, or 58.7%; customs duty revenues - BGN 99.4 million, or 73.0%. Compared to the same period of the previous year indirect tax revenues have decreased by BGN 49.9 million in nominal terms mainly as a result of lower revenues from VAT on imports. The level of non-refunded tax credit is by BGN 98.0 million lower - from BGN 202.0 million as of August 2013 to BGN 104.0 million as of August 2014. 

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 604.5 million, or 67.3% of the plans for 2014.

Revenues from social security and health insurance contributions are BGN 4,136.3 million, or 65.8 % of those planned for the year. Compared to the same period of the previous year these revenues have risen by 4.4% (BGN 175.7 million) in nominal terms

Неданъчните приходи и помощите са в размер на 4 092,5 млн. лв. или 61,0% от разчета за годината.Non-tax revenues and grants amount to BGN 4,o92.5 million, or 61.0 % of those planned for the year. Compared to the same period of 2013 non-tax revenues have decreased by BGN 243.5 million (9.1%) to the greatest extent due to lower property revenues and incomes, including because of one-off revenues in 2013. Grants have risen by 3.5% (BGN 56.7 million).

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, as of 31.08.2014 amount to BGN 20,490.7 million, which is 63.0% of the annual plans. Compared to August 2013 expenditure under the CFP have risen by BGN 1,281.6 million (6.7%), mainly due to higher expenditure under European programmes and funds, and to growth of social and health insurance payments. Expenditure under the EU funds accounts (including national co-financing) have risen by 40.2% (BGN 754.7 million) compared to the same period of 2013, and expenditure under the national budget - by 3.2% (BGN 538.8 million). The growth in social expenditure is mainly due to the basic effect of the increase of pensions as from 1 April 2013 and to higher health insurance payment in the first months of 2014 linked to payment of last year liabilities, etc.

Non-interest expenditures amount to BGN 19,349.5 million or 64.9% of the annual plans. Non-interest current expenditure as of end-August 2014 amount to BGN 16,790.2 million, or 67.7% of the plans, capital expenditure (including net increment of state reserve) amount to BGN 2,559.3 million, or 51.2% of the plans for 2014. Interest payments amount to BGN 478.4 million, or 71.4% of the plans for 2014.

The part of Bulgaria's contribution to the EU budget, as paid as of 31.08.2014 from the central budget, amounts to BGN 662.8 million, which complies with Council Regulation 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.

Fiscal reserve as of 31.08.2014 is BGN 8.7 billion, including BGN 8.2 billion deposits in BNB and banks and BGN 0.5 billion receivables under the EU Funds for certified expenditure, advance payments, etc. In accordance with §1, point 41 of the Public Finances Law Additional Provisions the fiscal reserve scope has been changed to include the receivables under the EU Funds for certified expenditure, advance payments, etc.

Data on the consolidated programme implementation as of 31 August 2014 are published on the website of the Ministry of Finance in category Topical Publications/ Statistics. 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.