08.04.2024

Based on the preliminary data and estimates, the Consolidated Fiscal Programme (CFP) budget balance as of end-March 2024 is expected to be a surplus of BGN 0.4 million (0.2% of the projected GDP). CFP revenues, grants and donations increase by around 7.5 percent as of March 2024 compared to the same period of the previous year.

At the end of March, the Electricity System Security Fund (ESSF) paid in full all liabilities to electricity producers in accordance with Article 36b(1) of the Energy Law.

Key CFP parameters based on preliminary data and estimates:

As of March 2024, CFP revenues, grants and donations are expected to be BGN 15.8 billion, increasing by BGN 1.1 billion (7.5 per cent) compared to those reported in Q1 of 2023. Compared to the same period of the previous year, tax revenues rise by BGN 0.3 billion in nominal terms. Revenues from social security contributions increase by about BGN 0.5 billion, direct tax revenues – by about BGN 0.2 billion, and indirect taxes are close to those reported for Q1 of 2023. A baseline effect is reported in the other taxes mainly in two areas. First, the earmarked contributions from electricity producers to the ESSF budget decrease in relation to the fact that of electricity prices on the Independent Bulgarian Energy Exchange go back to normal. Second, there is a decrease in the proceeds from the temporary solidarity contribution for Union companies and places of business operating in the crude oil, natural gas, coal and refining sectors for excess profits generated under Article 14 of Council Regulation (EU) 2022/1854 of 6 October 2022 on emergency intervention to address high energy prices. 

Proceeds from grants and donations (mainly grants under EU programmes and funds) increase by around BGN 0.9 billion, while non-tax revenues are lower than those reported for the same period of the previous year due to a decline in proceeds from the sale of greenhouse gas emission allowances under the ESSF budget.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for March 2024, amount to BGN 15.4 billion, which accounts for 18.9% of the annual estimates. In the individual expenditure items there is an increase in social expenditures due to the higher pensions paid following the increase effective as from July 2023, as well as due to the higher staff costs following the increase in teaching staff salaries and in some other administrations with the Law on the 2023 State Budget of the Republic of Bulgaria passed in the middle of 2023, etc. 

The part of the Republic of Bulgaria’s contribution to the EU budget paid from the central budget as of 31.03.2024 amounts to BGN 0.3 billion, which complies with the existing legislation in the area of EU own resources.

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 March 2024 will be published on the website of the Ministry of Finance at the end of April 2024.

Detailed information about the capital expenditures approved by the Council of Ministers under Annex No. 2 to the Law on the 2024 State Budget of the Republic of Bulgaria for March ПМС 57/21.03.2024 can be found here.