02.08.2024

Based on the preliminary data and estimates, the Consolidated Fiscal Programme (CFP) budget balance as of end-July 2024 is expected to be a deficit of BGN 1.0 million (0.5% of the projected GDP). For comparison, the CFP balance as of July 2023 was a surplus of BGN 0.5 million (0.2% of GDP).

Tax and social security revenues grow nominally at a steady pace compared to the same period of the previous year, while non-tax revenues are lagging behind the plan for the year, also compared to the previous year, mainly in the part of dividend receipts for the state from state-owned enterprises and revenues from the sale of greenhouse gas allowances. In the first seven months of 2023, dividend receipts for the state amounted to more than BGN 1.5 billion, while the receipts for the same period of the current year are only BGN 84 million, or BGN 1.45 billion less than in 2023, which is due to the non-distribution of dividend from the profit of Bulgarian Energy Holding EAD for the financial year 2023 in 2024.

Key CFP parameters based on preliminary data and estimates:

As of July 2024, CFP revenues, grants and donations are expected to be BGN 40.9 million, which accounts for 54.3% of the annual estimate. Compared to the same period of the previous year, the revenues increase by BGN 3.3 billion (8.9 per cent), which is due to the tax revenues increasing by BGN 3.5 billion (12.3 per cent) in nominal terms and to the revenues in the part of grants and donations (mainly grants under EU programmes and funds) which increase by BGN 0.9 billion. Compared to the previous year, non-tax revenues decrease by BGN 1.1 billion (15.2 per cent).

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for July 2024, amount to BGN 41.9 billion[1], which accounts for 51.3% of the annual estimates. Making a comparison with the previous year, there is an increase, mainly in social expenditures, due to the higher pensions paid following the increase effective as from July 2023 and July 2024, as well as in staff costs, following the increase in salaries for teaching staff and in other administrations with the Law on the 2023 State Budget of the Republic of Bulgaria and the Law on the 2024 State Budget of the Republic of Bulgaria, etc. 

The part of the Republic of Bulgaria’s contribution to the EU budget paid from the central budget as of 31.07.2024 amounts to BGN 0.8 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 Consolidated Fiscal Programme indicators based on the monthly data on cash execution of first-level spending units as of July 2024 will be published on the website of the Ministry of Finance at the end of August 2024.

[1] In February 2024, in execution of Article 71(1) of Council of Ministers’ Decree No 13 of 2024, a total amount of BGN 1.2 million was reimbursed to the budget of the Ministry of Regional Development and Public Works (MRDPW) from the external funds account. In the course of implementation of the 2024 budget part of these funds will be disbursed by a Council of Ministers’ act in the form of transfers to municipalities to fund the Municipal Projects Investment Programme under the procedure of Article 107 of the Law on the 2024 State Budget of the Republic of Bulgaria on the basis of agreements signed with the MRDPW. Eliminating this transaction and in order to make comparison with the previous year, expenditures at the end of July 2024 amount to BGN 43.1 billion compared with BGN 37.1 billion at the end of July 2023, representing a nominal increase of BGN 16.2 per cent over the first seven months of 2023.