30.04.2018

Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-March 2018 is positive, amounting to BGN 592.7 million, or 0.6% of the projected GDP, and is formed by a national budget surplus of BGN 880.2 million and by a EU funds deficit of BGN 287.6 million. The underlying factors for the excess of revenues over expenditures as of March are the good parameters of national budget tax and social security revenue performance.

The CFP revenues and grants in March 2018 stand at BGN 9,218.8 million, or 24.1% of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues have risen by BGN 621.1 million, or by 7.3%, with grant proceeds being lower.

Tax proceeds, including revenues from social security contributions, total BGN 7,828.6 million, which accounts for 25.1% of the revenues planned for the year. Compared to the data for March 2017, tax proceeds have risen by 7.4%, or by BGN 539.8 million, in nominal terms.

Direct tax revenues amount to BGN 1,453.2 million, or 25.2% of the estimates planned for the year, growing by BGN 122.4 million (9.2%) compared to the same period of the previous year.

Indirect tax revenues amount to BGN 3,829.3 million, which accounts for 25.3% of the annual estimates. Compared to the data as of March 2017, proceeds in this group have grown by BGN 115.3 million, or by 3.1%. VAT proceeds amount to BGN 2,561.3 million, or 26.2% of those planned. The amount of non-refunded VAT as of 31/03/2018 is BGN 70.8 million. The excise duty revenues amount to BGN 1,195.6 million, or 23.2% of the annual estimates. Customs duty proceeds amount to BGN 63.8 million, or 33.5% of the estimates for the year.

Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 330.0 million, or 30.1% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 2,216.1 million, which accounts for 24.3% of the estimates for the year. Compared to the same period of the previous year, the revenues from social security contributions have risen by BGN 282.2 million, or by 14.6%, in nominal terms.

Non-tax revenues amount to BGN 1,254.1 million, which accounts for a performance of 26.7% of the annual estimates.

Grant proceeds amount to BGN 136.2 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for March 2018, amount to BGN 8,626.2 million, which accounts for 21.9% of the annual estimates. For comparison, CFP expenditures for the same period of 2017 amount to BGN 7,780.6 million. The nominal increase is due both to the higher national budget expenditures and to the increasing expenditures under the European Union fund accounts. The increasing expenditures as against the same period of 2017 are mainly due to the higher amount of social payments related to the baseline effect for pension expenditures as a result of the increase in July 2017, the two-step increase in the minimum pension in 2017 (as from July and October), the higher staff costs (mostly resulting from the increase in the remuneration of pedagogical staff within the system of secondary education) and the increase in capital expenditures (mainly under EU fund accounts).

Non-interest expenditures amount to BGN 7,939.6 million, which accounts for 21.3% of the annual estimates. Non-interest current expenditure as of March 2018 amount to BGN 7,378.6 million, or 23.7% of the annual estimates, capital expenditures (including net increment of state reserve) amount to BGN 554.1 million, or 9.0% of the estimates to the 2018 State Budget of the Republic of Bulgaria. The current and capital transfers to other countries amount to BGN 6.9 million. Interest payments amount to BGN 378.4 million, or 52.4% of those planned for 2018.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31/03/2018, amounts to BGN 308.2 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 fiscal reserve as of end-March 2018 is BGN 10.1 billion, including BGN 9.5 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.6 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 31 March 2018 are published on the website of the Ministry of Finance, in the Statistics section.