01.10.2013

The budget balance under the Consolidated Fiscal Programme (CFP) as of 31 August 2013 is negative, amounting to BGN 212.7 million and is formed by a deficit under the national budget of BGN 101.4 million and a deficit under EU funds of BGN 111.2 million. On a monthly basis, there is a deficit of BGN 44.6 million in August against the deficit of BGN 92.7 million reported in August 2012.

Key CFP parameters for August 2013

CFP revenues and grants as of 31 August 2013 stand at BGN 18,996.4 million or 62.5% of the annual plans for 2013 under the Law amending the 2013 State Budget of the Republic of Bulgaria Law. Compared to 2012, CFP proceeds and grants report a nominal growth by 6.7% (BGN 1,190.1 million). This growth is formed by a growth in grant revenues (60.2% or BGN 606.6 million more), tax revenues (3.0% or BGN 423.8 million) and non-tax revenues (6.4% or BGN 159.7 million).

At end-August 2013, tax proceeds, including revenues from social security contributions, total BGN 14,717.1 million, which is 77.5% of the overall CFP proceeds. Revenues from direct taxes are BGN 2,599.3 million, or 64.2% of those planned in the Law amending the 2013 State Budget Law. Indirect tax revenues amount to BGN 7,582.3 million, or 63.6% of the annual plans for 2013. VAT revenues amount to BGN 4,884.2 million, or 63.8% of the revised plans. It should be noted that the amount of VAT revenue in July and August is influenced by the higher amount of VAT refunded to companies under the VAT Law, which is part of the business repayment measures of the Government. Proceeds from the other taxes in this group as of 31 August 2013 are as follows: excise duty revenues of BGN 2,589.8 million (62.9% of the revised plans), customs duty revenues of BGN 94.8 million (79.0% of the annual plans) and insurance premium tax of BGN 13.5 million (48.2% of the annual plans).

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 574.9 million, or 71.0% of the plans for 2013. Revenues from social security and health insurance contributions as of 31 August 2013 are BGN 3,960.5 million, or 65.2% of those planned for the year. Non-tax revenues and grant proceeds amount to BGN 4,279.2 million, or 56.8% of those planned for 2013.

The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31 August 2013 amount to BGN 19,209.1 million. They account for 60.1% of those planned for the year. Compared to August 2012, CFP expenditures have increased by BGN 1,510.4 million, or by 8.5%. In structural terms, there is a growth in social and health insurance payments, interest expenditure, maintenance expenditure, etc.

Non-interest current expenditures amount to BGN 15,877.6 million, or 65.8% of the plans, capital expenditures (including net increment of state reserve) amount to BGN 2,037.4 million, or 37.8% of the plans under the Law amending the 2013 State Budget Law, while interest payments - to BGN 619.4 million, or 70.8% of the plans for 2013.

The part of Bulgaria\'s contribution to the EU budget, as paid as of 31 August 2013 from the central budget, amounts to BGN 674.7 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.

Fiscal reserve as of 31 August 2013 amounts to BGN 4.7 billion. The drop in the fiscal reserve in August compared to July is mostly due to a repayment of government securities under the short-term debt assumed in February 2013 in the form of 6-month treasury bills at a nominal value of BGN 800 million.

Data on consolidated budget implementation as of 31 August 2013 are published in \"Statistics\" section on the website of the Ministry of Finance.