31.05.2014

Fiscal reserve as of 30.04.2014 is BGN 6.0 billion, including BGN 5.1 billion deposits in BNB and banks and BGN 0.9 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.

Consolidated revenues and grants under CFP for the reported period stand at BGN 9,453.8 million, or 30.5 % of the annual plans for 2014 compared to 30.4% for the same period of the previous year. Compared to January-April 2013 revenues under the CFP have risen by BGN 165.2 million (1.8%), the rise being mainly due to tax revenues.

At end-April 2014 tax proceeds, including revenues from social security contributions, total BGN 7,510.3 million, which is 30.9% of the 2014 plans.

Revenues from direct taxes amount to BGN 1,675.9 million, or 38.8% of the annual plans, and are by 0.2% higher than the same period of the previous year. Revenues from indirect taxes amount to BGN 3,465.2 million or 27.0% of the annual plans of which VAT revenues amount to BGN 2,254.2 million, or 27.2%; excise duty revenues of BGN 1,158.1 million, or 26.5%; customs duty revenues of BGN 46.7 million, or 34.3%. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 395.0 million, or 44.0% of the plans for 2014. Revenues from social security and health insurance contributions are BGN 1,974.2 million, or 31.4% of those planned for the year.

Indirect taxes revenues as of 30.04.2014 decreased by BGN 80.6 million in nominal terms compared to the same period of the previous year as a result of the larger amounts of VAT and excise duties refunded in the first four months of 2014 compared to the same period of 2013, and also of the consumption and imports dynamics. For the period January-April 2013 the VAT refunded amounted to BGN 1,872.7 while for the same period of 2014 - BGN 1,957.0 or by BGN 84.3 million more. The amount of non-refunded VAT lowered from BGN 309.0 million as of April 2013 to BGN 189.0 million as of April 2014. The strict adherence to the statutory deadlines for VAT and excise duties refunds that has started since the beginning of the term of office of the Government and is continuing this year is also in line with the policy of establishing the state as an upright payer and partner of the businesses and is a means for creating normal conditions for growth and development. The basic effect of received in February 2013 arrears to the amount of BGN 65 million should also be taken into account; they had a one-off effect for 2013, so that makes VAT revenues for the two periods incomparable. An impact on the VAT proceeds from imports have also the planned repairs of the manufacturing facilities of a large economic operator which postpones parts of the supplies of raw materials for production and respectively VAT payment due on imports for future periods.

Non-tax revenues and grants amount to BGN 1,943.5 million, or 29.0 % of those planned for the year.

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, as of 30.04.2014 amount to BGN 10,318.2 million, which is 31.7% of the annual plans. Compared to April 2013 expenditure under the CFP have risen by BGN 743.3 million (7.8%), mainly due to the accelerated absorption under European programmes and funds, and to social expenditure growth. It is important to note that expenditure under the EU funds accounts (including national co-financing) have risen considerably by BGN 514.2 million compared to the same period of 2013, which is linked to the better EU funds absorption, while national budget expenditure have only risen by 2.6% (BGN 229.1 million) compared to the reported for the same period of 2013. EU funds expenditure (including national co-financing) amount to BGN 1,229.9 million as of the end of April 2014, the reported for the same period of 2013 being BGN 715.7 million. In structural terms maintenance and interest payments are lower compared to the same period of last year, while social and health insurance payments and capital expenditure have risen. 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. On the other hand capital expenditure growth (including net increment of state reserve) is again linked with the higher payments under EU programmes and funds. As of end-April 2014 they amount to BGN 1,066.5 million, or by BGN 358.2 more compared to the same period of the previous year - BGN 708.3 million.

Non-interest expenditures amount to BGN 9,690.0 million or 32.5% of the annual plans. Non-interest current expenditure as of April 2014 amount to BGN 8,623.5 million, or 34.8% of the plans, capital expenditures (including net increment of state reserve) amount to BGN 1,066.5 million, or 21.4% of the plans for 2014. Interest payments amount to BGN 206.5 million, or 30.8% of the plans for 2014.

The part of Bulgaria's contribution to the EU budget, as paid as of 30/04/2014 from the central budget, amounts to BGN 421.7 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.

The budget balance on a cash basis under the Consolidated Fiscal Programme (CFP) as of April 2014 is negative, amounting to BGN 864.5 million and is formed by a deficit under the national budget of BGN 454.1 million and a deficit under EU funds of BGN 410.4 million. The deficit is formed mainly by the higher expenditure under European programmes and funds, and by higher social expenditure, including due to the basic effect of the increase of pensions as from 1 April 2013. The deficit under the CFP as of end-April 2014 amounts to BGN 286.4 million.

Data on the consolidated programme implementation as of 30 April 2014 are published on the website of the Ministry of Finance in category Topical Publications/Statistics.