30.12.2014

Based on the monthly data of first-level spending units, the Consolidated Fiscal Programme (CFP) balance as of end-November is negative, amounting to BGN 1,600.7 million.

The revenues and grants under CFP as of 30 November 2014 stand at BGN 26,738.4 million, or 89.2% of the annual plans for 2014 under the State Budget of the Republic of Bulgaria Law[1]. Compared to the same period of the previous year, CFP revenues as of end-November increase in nominal terms by BGN 427.5 million, or 1.6%, while taking into account the baseline effect from one-off proceeds received in 2013 in the part of non-tax revenues.

At end-November 2014 tax proceeds, including revenues from social security contributions, total BGN 21,023.2 million, which accounts for 90.2% of the revised plans for 2014. Compared to the same period of the previous year, tax proceeds have risen by BGN 754.5 million, or 3.7%, in nominal terms.

Revenues from direct taxes amount to BGN 3,731.1 million, or 87.2% of those planned in the Law amending the 2014 State Budget of the Republic of Bulgaria Law, and, compared to the same period of the previous year, grow by BGN 316.6 million, or by 9.3%. PITL proceeds register an increase by 11.5% (BGN 247.3 million). As of end-November 2014, there is also an increase in corporate tax revenues by BGN 69.3 million, which is 5.4% more than the same period of last year.

Revenues from indirect taxes amount to BGN 10,733.6 million, or 90.0% of the revised plans for 2014. Compared to the same period of the previous year, proceeds rise by BGN 134.0 million in nominal terms.

VAT revenues amount to BGN 6,849.6 million, or 89.0% of those planned for the year. Compared to the same period of the previous year, VAT revenues have grown by BGN 103.4 million. Excise duty revenues amount to BGN 3,720.1 million, or 91.6% of those planned for the year. Excise duty proceeds grow by BGN 23.3 million, or 0.6%, in nominal terms compared to those reported in the same period of the previous year. Customs duty proceeds amount to BGN 139.5 million, or 93.4% of the plans for the year. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 764.3 million, or 94.3% of the revised plans for 2014. Revenues from social security and health insurance contributions are BGN 5,794.2 million, or 92.2% of those planned for the year. Compared to the same period of the previous year, the revenues from social security contributions have risen by BGN 292.6 million, or 5.3%, in nominal terms.

Non-tax revenues amount to BGN 3,204.4 million, or 93.3% of the revised plans for 2014. This is by BGN 438.5 million less than the same period of last year and is due to the baseline effect from one-off revenues received in 2013 from state dividends and from an amount awarded in favour of the state in arbitration.

Proceeds from grants received domestically or from abroad, including EU grants, amount to BGN 2,510.8 million, which accounts for 77.6% of the revised plans for the year.

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, as of 30.11.2014 amount to BGN 28,339.1 million, which is 86.0% of the revised annual plans. Compared to November 2013, CFP expenditures have risen by BGN 1,456.2 million, or (5.4%), mainly due to the accelerated absorption under European programmes and funds, and to the growth of social security and health insurance payments. Expenditures under the EU funds accounts, including national co-financing, have risen by BGN 714.2 million, or 22.9%, compared to the same period of 2013, while national budget expenditures have risen by 3.1% (BGN 742.0 million) compared to those reported for the same period of 2013. The growth of social expenditures is mostly due to a baseline effect from the pension increase since 1 April 2013, as well as to higher health insurance payments in 2014.

Non-interest expenditures amount to BGN 26,994.9 million, or 90.1% of the revised annual plans. Non-interest current expenditures for the eleven months of 2014 amount to BGN 23,043.5 million, or 92.5% of the plans, capital expenditures (including net increment of state reserve) amount to BGN 3,951.4 million, or 77.9% of the plans under the Law amending the 2014 State Budget of the Republic of Bulgaria Law. Interest payments amount to BGN 534.1 million, or 79.8% of the plans for 2014.

The part of Bulgaria's contribution to the EU budget, as paid as of 30/11/2014 from the central budget, amounts to BGN 810.1 million, which complies with Council Regulation (EC, EURATOM) 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 November 2014 is negative, amounting to BGN 1,600.7 million, and is formed by a deficit under the national budget of BGN 854.9 million and a deficit under EU funds of BGN 745.8 million.

The fiscal reserve as of 30.11.2014 is BGN 8.8 billion, including BGN 8.2 billion of deposits in BNB and banks and BGN 0.6 billion of receivables under the EU Funds for certified expenditures, advance payments, etc. In accordance with §1, point 41 of the Additional Provisions of the Public Finance Law, the fiscal reserve scope has been changed to include the receivables under the EU Funds for certified expenditures, advance payments, etc.

Data on the consolidated programme implementation as of 30 November 2014 are published on the website of the Ministry of Finance in the category of 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.

[1]  Law amending the 2014 State Budget of the Republic of Bulgaria Law (Promulgated in issue 98/28.11.2014 of the State Gazette).