30.06.2023

Based on data from the monthly reports on the cash performance of the budgets of first-level spending units, the balance of the Consolidated Fiscal Programme (CFP) on a cash basis as of end-May 2023 is negative, amounting to BGN 1,178.5 million (0.6 % of forecast GDP), and is formed by a deficit under the national budget of BGN 1,316.1 million and an excess of revenues over expenditures under EU funds of BGN 137.7 million. For comparison, a CFP surplus of BGN 605.1 million was reported for the first five months of 2022. Although CFP revenues have increased by 9.1 %, expenditures have registered growth of 17.3 % which leads to excess of expenditures over revenues and a deficit for the period, respectively.

As of May 2023, CFP revenues, grants and donations are to the amount of BGN 24,922.5 million. Proceeds have increased by BGN 2,073.0 million (9.1 %) compared to those reported as of May 2022. Tax and non-tax proceeds under CFP rise by BGN 2,207.3 million in nominal terms, while proceeds from grants and donations (mostly EU programme and fund grants) are by BGN 134.3 million less as compared to the amount reported for the same period of the previous year.

Tax proceeds (including revenues from social security and health insurance contributions) are to the amount of BGN 19,795.5 million. Proceeds from taxes and social security and health insurance contributions have grown by BGN 2,027.1 million (11.4 %) compared to those reported for the same period of the previous year, forming 79.4 % of the overall CFP proceeds for the period. Revenues from direct taxes amount to BGN 3,398.0 million, increasing by BGN 411.0 million (13.8 %) compared to those reported as of May 2022. Proceeds from indirect tax (mostly VAT) amount to BGN 8,698.9 million (a drop by BGN 19,5 million, or by 0,2 % compared to those reported as of May 2022). Proceeds from other taxes (including other taxes under the Corporate Income Tax Law, property taxes, etc.) amount to BGN 1,528.3 million (including BGN 656.2 million targeted contributions to the Electricity System Security Fund) or the growth is BGN 771,5 million compared to the proceeds reported as of May 2022. Revenues from social security and health insurance contributions are BGN 6,170.2 million, registering growth of BGN 864.1 million (16.3%) compared to the same period of 2022.

Non-tax revenues amount to BGN 4,147.5 million (growth of BGN 180.2 million, or 4.5 % compared to the same period of 2022) and are mostly formed by revenues from state, municipal and legal fees, revenues from rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Proceeds from grants and donations amount to BGN 979.5 million.

The expenditures under CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 26,100.9 million as of May 2023. For comparison, the expenditures under the CFP as of May 2022 amounted to BGN 22,244.4 million. In nominal terms, expenditures have increased by BGN 3,856.6 million compared to the first five months of 2022 (17.3 %). The most significant increase in the individual expenditure indicators is recorded in terms of pension expenditures (BGN 1,716.4 million), as well as in the part of staff expenditures (BGN 919.9 million), capital expenditures (BGN 539.0 million), subsidies (BGN 150.6 million), maintenance (BGN 146.8 million), etc. The growth in expenditures results from enacted legal acts, including changes in the area of pensions, existing programmes for payment of compensation to electricity consumers, payment of liabilities under the budget of the Ministry of Regional Development and Public Works, enforceable higher amounts of remuneration in a number of administrations, etc. 

Non-interest expenditures amount to BGN 25,053.6 million (growth of BGN 3,853.5 million, or 18.2 % compared to those reported as of May 2022). Non-interest current expenditures amount to BGN 23,313.2 million. Capital expenditures (including net increment of state reserve) amount to BGN 1,729.3 million. The current and capital transfers to other countries amount to BGN 11.0 million. Interest payments amount to BGN 335.7 million (a drop by BGN 36,6 million, or by 9,8 % compared to the same period of 2022).

The part of Republic of Bulgaria's contribution to the EU budget, paid from the central budget as of 31 May 2023, amounts to BGN 711.7 million, which complies with the current legislation in the area of EU own resources.

Fiscal reserve as of 31.05.2023 is BGN 11.7 billion, including BGN 10.8 billion fiscal reserve deposits in BNB and banks and BGN 0.9 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

The Consolidated Fiscal Programme performance data as of 31 May 2023 are published on the website of the Ministry of Finance in Statistics section. The statistical data are accompanied by an Information Bulletin on the Execution of the State Budget and the main indicators of the consolidated fiscal programme, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.