31.03.2016

Based on the monthly data of first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-February 2016 is positive, amounting to BGN 915.2 million, or 1.0% of the projected GDP, and is formed by a national budget surplus of BGN 508.6 million and a surplus of EU funds of BGN 406.6 million. For comparison, a CFP deficit of BGN 105.5 million (0.1% of GDP) was reported in the first two months of 2015, which means that, as a relative share of GDP, the budget stance has improved by 1.1 percentage points. The higher revenues and grants continue being among the key factors for the improved budget stance, with some positive impact coming from the cut in expenditures as compared to the same period of the previous year.

The CFP revenues and grants in February 2016 stand at BGN 5,519.4 million, or 16.7% of the annual estimates. Compared to the first two months of the previous year, revenues and grants have grown by BGN 757.8 million, or by 15.9 %.

The tax proceeds, including revenues from social security contributions, total BGN 4,233.8 million, which accounts for 16.3% of the revenues planned for the year. Compared to February 2015, tax proceeds have risen in nominal terms by 10.0%, or by BGN 383.5 million. In structural terms, the proceeds from indirect taxes report the most considerable growth.

The direct tax revenues amount to BGN 487.5 million, or 10.4% of those planned in the 2016 State Budget of the Republic of Bulgaria Law, growing by BGN 8.0 million, or by 1.7% as against the first two months of 2015.

Revenues from indirect taxes amount to BGN 2,516.6 million, which accounts for 19.0% of the 2016 State Budget of the Republic of Bulgaria Law estimates, growing by BGN 331.4 million, or by 15.2% as against the previous year. The VAT proceeds amount to BGN 1,697.4 million, or 20.2 % of those planned for the year. Compared to the previous year, the VAT revenues have risen by 193.7 million. The amount of the non-refunded VAT as of end-February is BGN 141.1 million. There is also a growth in the excise duty revenues which amount to BGN 787.1 million, or 16.9% of the annual estimates, while as against February 2015 they have grown by 21.0%, or by BGN 136.5 million. The customs duty proceeds amount to BGN 25.9 million, or 17.3 % of the estimates for the year.

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 122.3 million, or 13.4% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 1,107.4 million, which accounts for 15.5% of the estimates for the year. Compared to the previous year, the revenues from social security contributions have risen by 3.2%, or by BGN 34.8 million, in nominal terms. 

Non-tax revenues amount to BGN 775.4 million, which accounts for 17.3% of the annual estimates, and is by BGN 105.7 million (15.8%) more than in February 2015.

Proceeds from grants received domestically or from abroad, including EU grants, amount to BGN 510.3 million, which accounts for 20.1% of the annual estimates. Compared to the first two months of 2015, grant revenues have risen by BGN 268.5 million.

The Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget for February 2016, amount to BGN 4,604.1 million, which accounts for 13.2% of the annual estimates. For comparison, the CFP expenditures as of February 2015 amount to BGN 4,867.1 million.

Non-interest expenditures amount to BGN 4,307.7 million, which accounts for 13.2% of the annual estimates. Non-interest current expenditure as of February 2016 amount to BGN 4,077.3 million, or 15.4% of the annual estimates, capital expenditures (including net increment of state reserve) amount to BGN 230.4 million, or 3.8% of the 2016 State Budget of the Republic Bulgaria Law estimates. Interest payments amount to BGN 116.8 million, or 14.6% of those planned for 2016.

The part of Bulgaria's contribution to the EU budget, as paid as of February 2016 from the central budget, amounts to BGN 179.7 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 fiscal reserve as of 29.02.2016 is BGN 8.9 billion, including BGN 6.8 billion of fiscal reserve deposits with BNB and banks and BGN 2.1 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

Data on consolidated fiscal programme implementation as of 29 February 2016 are published on the website of the Ministry of Finance, in the Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.