30.06.2016

The first level spending units' monthly reports show that the consolidated fiscal programme (CFP) balance for May 2016 is positive to the amount of BGN 2,773.6 million (3.1% of forecast GDP) and is formed by a surplus under the national budget of BGN 1,665.6 million and a surplus under EU funds of BGN 1,108.0 million. For comparison, a CFP surplus of BGN 1,091.1 million (1.3% of GDP) was reported in the first five months of 2015, which means that, as a relative share of GDP, the budget stance has improved by 1.8 percentage points. The improved budget stance is still due to the growth of revenues and the containment of expenditures as compared to the same period of the previous year. 

Consolidated revenues and grants under CFP as of May 2016 stand at BGN 14,852.1 million, or 45.0% of the annual plans. Compared to the first five months of 2015, revenues and grants have grown by BGN 1,033.5 million, or by 7.5%. The growth as compared to the previous year is due to the higher tax and non-tax revenues, which have risen by BGN 1,261.4 million, while grants (funds reimbursed by the European Commission) are lower by BGN 227.9 million. Nevertheless, the performance of receipts from grants as compared to the annual plan is good, with the grants from the country and abroad (including grants from EU Funds) being to the amount to BGN 1,550.4 million or 60,9% of the annual plan. When comparing receipts in terms of grants from this year and from last year, one should bear in mind the clearly visible base effect in 2015 related to the higher expenditures (and funds reimbursed by the European Commission, respectively) on project for the previous programming period 2007 - 2013.

Tax proceeds, including revenues from social security and health insurance contributions, total BGN 11,321.0 million, which is 43.6% of the annual plans. Compared to May 2015 tax revenues have risen by 10.1% (BGN 1,037.2 million) in nominal terms. In structural terms the highest growth is reported in indirect tax revenues.

Revenues from direct taxes amount to BGN 2,224.7 million, which accounts for 47.5% of the annual plans for 2016 and compared to the first five months of 2015 have risen by BGN 169.7 million, or by 8.3%.

Indirect tax revenues amount to BGN 5,663.5 million, or 42.7% of the 2016 Annual Budget Law plans and compared to the previous year have risen by BGN 683.2 million, or by 13.7%. VAT revenues amount to BGN 3,708.7 million, or 44.1% of the planned for the year. Compared to the previous year these revenues have risen by BGN 442.0 million. The non-refunded VAT amount as of end-May is BGN 140.8 million. Growth is reported in excise duty revenues which amount to BGN 1,869.5 million (40.0% of the annual plans), and compared to May 2015 have risen by 14.1%, or BGN 231.0 million. Customs duty proceeds amount to BGN 70.4 million, or 47.0% of the planned for the year.

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 520.5 million, or 57.1% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 2,912.3 million, or 40.8% of those planned for the year. Compared to the previous year these revenues have risen by 4.8% (BGN 133.7 million) in nominal terms 

Non-tax revenues amount to BGN 1,980.7 million, or 44.2% of the annual plans, or by BGN 224.3 million (12.8%) more compared to end-May 2015.

The expenditures under the Consolidated Fiscal Programme, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 12,078.5 million as of end-May 2016, which is 34.7% of the annual plans. For comparison the expenditures under the CFP as of end-May 2015 amounted to BGN 12,727.5 million.

Non-interest expenditures amount to BGN 11,376.4 million, which accounts for 34.9% of the annual plans. Non-interest current expenditures as of end-May 2016 amount to BGN 10,710.8 million, or 40.4% of the plans, capital expenditures (including net increment of state reserve) amount to BGN 665.5 million, or 10.9% of the plans for 2016. Interest payments amount to BGN 345.6 million, or 43.1% of those planned for 2016.

The part of Bulgaria's contribution to the EU budget, as paid from the central budget as of May 2016, amounts to BGN 356.6 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.

Fiscal reserve as of 31.05.2016 is BGN 13,4 billion, including BGN 11.9 billion deposits in BNB and banks and BGN 1.5 billion receivables under the EU Funds for certified expenditure, advance payments, etc. 

The Consolidated Fiscal Programme performance data as of 31 May 2016 are published on the website of the Ministry of Finance in Statistics section.