31.01.2014

The budget balance under the Consolidated Fiscal Programme (CFP) on a cash basis for 2013 is negative, amounting to BGN 1,448.4 million (1.8 % of forecast GDP). For comparison the planned in the 2013 State Budget Law deficit on a consolidated basis is 2% of GDP. The budget balance under the CFP is formed by a deficit under the national budget of BGN 891.6 million and a deficit under EU funds of BGN 556.8 million.

Fiscal reserve as of 31.12.2013 amounts to BGN 4.7 billion.

The CFP implementation for 2013 shows that the country's fiscal position is stable - the figures reported for the deficit and the government debt are lower than the ones planned in the State Budget Law, while the fiscal reserve level is higher than the one provided in the law.

In parallel with maintaining fiscal stability the Government has begun to implement its priority policies for fostering growth and ensuring a level playing field for the state and the businesses. Indicative thereof is bringing the amount of non-refunded VAT at the end of year 2013 to the lowest level for the past 7 years. During the second half of the year part of the arrears of the central government as of end of June 2013were also paid. Efforts are being made to improve the communication and facilitate the work of the businesses with the revenue administrations, and to lower the administrative burden. The fiscal effects of these measures are already noticeable - during the last months revenues from a number of taxes and social security contributions are gradually improving.

In parallel with improving the business environment a priority in the expenditure policies were the social responsibilities of the state and the gap in the financing of the health sector. In order to support the most vulnerable groups (including payment of a one-off Christmas allowance for the pensioners with the lowest pensions) and to close the financing gap in the health sector a considerable additional financial resource was provided totalling around BGN 125 million without worsening the budget balance under the CFP.

Consolidated revenues and grants under CFP for 2013 stand at BGN 28,981.4 million or 36.7% of forecast GDP compared to 35.4% for 2012. Compared to 2012, CFP proceeds and grants report a nominal growth by 5.5% (BGN 1,511.9 million).

For 2013 tax proceeds, including revenues from social security contributions, total BGN 22,370.3 million, which is 97.9% of the plans.

Revenues from direct taxes amount to BGN 3,901.5 million for 2013, or 96.3% of the plans for the year. Revenues from indirect taxes amount to BGN 11,590.7 million or 97.3% of the annual plans for 2013 of which VAT revenues amount to BGN 7,366.5 million; excise duty revenues of BGN 4,055.8 million; customs duty revenues of BGN 146.2 million and insurance premium tax of BGN 22.3 million. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 817.9 million, or 101.0% of the plans for 2013. Revenues from social security and health insurance contributions as of 31/12/2013 are BGN 6,060.2 million, or 99.8% of those planned for the year.

Non-tax revenues amount to BGN 3,966.1 million, or 104.5% of those planned for the year. The proceeds from state charges, fines, sanctions and default interest, concession fees, etc. also performed well.

CFP grant proceeds as of 31.12.2013 amount to BGN 2,645.0 million (70.7% of the plans).

The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31.12.2013 amount to BGN 30,429.8 million, which is 95.2% of the annual plans. In structural terms, social and health insurance payments, capital expenditure, maintenance expenditure, interest expenditure, etc., report a growth.

The part of Bulgaria's contribution to the EU budget, as paid for 2013 from the central budget, amounts to BGN 934.1 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.

Data on consolidated budget implementation as of 31 December 2013 are published on the website of the Ministry of Finance /„Statistics". The statistical data are accompanied by an Information Bulletin on the Execution of the Consolidated Budget which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.