02.05.2019

Based on the preliminary data and estimates, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of April 2019 is expected to be positive, amounting to BGN 2,678.2 million (2.3% of the projected GDP). Traditionally, April is characterised by an excess of CFP revenues over expenditures due to the specifics of the tax calendar. The amounts reimbursed by the European Commission in the grants part also contribute to the improved budget stance this month.

Key CFP parameters based on preliminary data and estimates:

As of April 2019, CFP revenues and grants are expected to be BGN 15,112.2 million, which accounts for 34.5% of the annual estimate. Compared to April 2018, CFP revenues grow by BGN 2,141.4 million, with some growth being registered for both tax and non-tax revenues and proceeds from grants and donations where EU programme and fund grants are mainly received. Based on the estimates available, tax revenues report a growth by BGN 1,090.5 million, non-tax revenues – by BGN 672.9 million, and proceeds from grants and donations – by BGN 378.0 million. A baseline effect appears in the non-tax revenue part relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018 which have changed the mechanism for collection of revenues under the Fund’s budget. The revenues under the Fund’s budget for the first four months of 2019 are therefore higher than the proceeds for the same period of 2018.

As of April 2019, the Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 12,434.0 million, which accounts for 28.0% of the annual estimates, with the normal performance of expenditures compared to the plans in the annual estimates being higher in the second half of the year. For comparison, the CFP expenditures as of April 2018 amount to BGN 11,651.7 million. Compared to the same period of the previous year, the nominal increase is mainly due to the higher amount of staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law) and the higher contribution to the general EU budget in 2019.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30.04.2019, amounts to BGN 536.6 million, which complies with the existing legislation in the area of EU own resources, i.e. Council Decision 2014/335/EU on the system of own resources of the European Union, Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union and Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements, as amended by Council Regulation (EU, Euratom) 2016/804 of 17 May 2016.

The statistical data and the Information Bulletin on the Execution of the State Budget and the key Consolidate Fiscal Programme indicators based on the monthly data on cash execution of first-level spending units as of April 2019 will be published on the website of the Ministry of Finance at the end of May 2019.