18.09.2011

Based on preliminary data, the budget balance under the Consolidated Fiscal Programme (CFP) for the first eight months of 2011 is negative, amounting to around BGN 732 million or 1.0% of projected GDP. On a monthly basis, the budget deficit has shrank to just BGN 11 million in August compared to July. The CFP deficit in 2011 has improved by about BGN 805 million or 1.2 p.p. of GDP in nominal terms on a cash basis compared to the same period of last year. In the period January-August 2010, the deficit was BGN 1, 536.7 million or 2.2% of GDP.

At end-August CFP revenues and grants stand roughly at BGN 16,241 million or 62.0% of those planned. Compared to the same period of 2010, proceeds report a growth by BGN 6.1% (BGN 940.0 million), which is mostly due to higher tax revenue. Revenues from indirect taxes report a growth by 13.1% (or by BGN 769 million), with some increase also being registered in the part of proceeds from social security and health insurance contributions, direct taxes, etc.

The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31 August amount to BGN 16,973 million or 60.2% of those planned. In nominal terms, expenditures remain close to those reported in the same period of 2010 by a growth of 0.8%, with some increase being mostly reported in health insurance expenditures and maintenance expenditures. Payroll expenditures shrink by BGN 39 million compared to the eight months of the previous year.

The part of the contribution of the Republic of Bulgaria to the EU budget paid from the central budget by the end of August amounts to BGN 466.3 million in accordance with Regulation 1150/2000 of the Council.

Fiscal reserve as of 31 August 2011 amounts to BGN 5.0 billion.

Final data on CFP performance as of 31 August 2011 will be published at the end of September.