28.04.2016

The first level spending units' monthly reports show that the consolidated fiscal programme (CFP) balance for March 2016 is positive to the amount of BGN 1,863.6 million (2.1% of forecast GDP) and is formed by a surplus under the national budget of BGN 819.7 million and a surplus under EU funds of BGN 1,043.9 million. For comparison, a CFP surplus of BGN 255.9 million (0.3% of GDP) was reported in the first quarter 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. In March we traditionally witness high budget revenues due to the specificities of the tax calendar. In addition to the higher tax revenues and revenues from social security and health insurance contributions in the first quarter, in March 2016 grants in the amount of BGN 786.1 million were received from the European Commission. Part of this amount refers to expenditures incurred at the end of 2015 and refunded to Bulgaria, and the rest refers to advance payments under European programmes for the new programming period 2014 - 2020.

Consolidated revenues and grants under CFP as of March 2016 stand at BGN 9,097.1 million, or 27.6% of the annual plans. Compared to the first quarter of the previous year, revenues and grants have grown by BGN 1,302.0 million, or by 16.7%.

Tax proceeds, including revenues from social security and health insurance contributions, total BGN 6,596.9 million, which is 25.4% of the annual plans. Compared to March 2015 tax revenues have risen by 11.1% (BGN 659.4 million) in nominal terms. In structural terms the highest growth is reported in indirect tax revenues.

Revenues from direct taxes amount to BGN 1,204.0 million, which accounts for 25.7% of the annual plans for 2016 and compared to the first quarter of 2015 have risen by BGN 119.0 million or by 11.0%.

Indirect tax revenues amount to BGN 3,409.8 million, or 25.7% of the 2016 Annual Budget Law plans and compared to the previous year have risen by BGN 446.3 million or by 15.1%. VAT revenues amount to BGN 2,293.8 million, or 27.3% of the planned for the year. Compared to the previous year these revenues have risen by (BGN 324.4 million. The non-refunded VAT amount as of end-March is BGN 141.2 million. Growth is reported in excise duty revenues which amount to BGN 1,069.2 million (22.9% of the annual plans), and compared to March 2015 have risen by 12.6% or BGN 119.4 million. Customs duty proceeds amount to BGN 41.0 million, or 27.3% 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 286.4 million, or 31.4% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 1,696.6 million, or 23.8% of those planned for the year. Compared to the previous year these revenues have risen by 4.4% (BGN 71.9 million) in nominal terms 

Non-tax revenues amount to BGN 1,200.0 million or 26.8% of the annual plans or by BGN 120.2 million (11.1%) more compared to March 2015.

Grants from the country and abroad (including grants from EU Funds) amount to BGN 1,300.2 million or 51.1% of the annual plan. Compared to the first quarter of 2015 grants have risen by BGN 522.3 million.

The expenditures under the Consolidated Fiscal Programme, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 7,233.5 million as of end-March 2016, which is 20.8% of the annual plans. For comparison the expenditures under the CFP as of end-March 2015 amounted to BGN 7,539.2 million.

Non-interest expenditures amount to BGN 6,668.8 million, which accounts for 20.4% of the annual plans. Non-interest current expenditures as of end-March 2016 amount to BGN 6,308.7 million, or 23.8% of the plans, capital expenditures (including net increment of state reserve) amount to BGN 360.1 million, or 5.9% of the plans for 2016. Interest payments amount to BGN 310.8 million, or 38.7% of those planned for 2016.

The part of Bulgaria's contribution to the EU budget, as paid from the central budget as of 31.3.2016, amounts to BGN 253.9 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 31.3.2016 is BGN 11,9 billion, including BGN 11.5 billion deposits in BNB and banks and BGN 0.4 billion receivables under the EU Funds for certified expenditure, advance payments, etc. 

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