02.07.2024

Based on preliminary data and estimates the budget balance of the Consolidated Fiscal Programme (CFP) as of end-June 2024 is expected to be deficit, amounting to BGN 0.6 billion (0.3 % of the forecast GDP). For comparison, the balance under the CFP for the first half of 2023 was close to balanced (surplus amounting to 0.1 % of GDP).

It should be noted that, unlike the previous year, when dividends for the state from state-owned enterprises amounting to about BGN 0.4 billion were paid to the state budget in June, this year the amount of dividend revenues is negligible. On the other hand, in execution of the international agreement (LOA) BU-B-UCP “Acquisition of Stryker combat vehicles”, ratified by the National Assembly, in June the Ministry of Defence incurred expenditures totalling about BGN 0.6 billion.

Key CFP parameters on the basis of preliminary data and estimates:

Revenues, grants and donations under CFP as of June 2024 are expected to be BGN 34.5 billion, or 45,8 % of the annual estimates. Compared to the same period of the previous year proceeds rise by BGN 3.1 billion (9.8 per cent); the factors for this increase are the tax revenues that rise by BGN 2.6 billion in nominal terms (10.6 per cent) and the proceeds from grants and donations (mainly grants under EU Programmes and Funds) that rise by BGN 0.8 billion. Compared to the previous year, non-tax revenues decrease by BGN 0.3 billion (5.5 %), driven mainly by a drop in the greenhouse gas emission allowance revenues to the budget of the Electricity System Security Fund, as well as in the revenues from dividends paid to the state by state-owned enterprises.

The expenditures under the CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 35.1 billion[1] as of June 2024, which is 43.0 % of the annual estimates. On a comparable basis in relation to 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, as well as in 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 and with the Law on the 2024 State Budget of the Republic of Bulgaria, etc. 

The part of Republic of Bulgaria's contribution to the EU budget, paid from the central budget as of 30 June 2024, amounts to BGN 0.7 billion, which complies with the current 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 indicators of the Consolidated Fiscal Programme based on data from the monthly reports on the cash performance of the budgets of the first-level spending units as of June 2024 will be published on the website of the Ministry of Finance at the end of July 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 billion 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 on the basis of agreements signed with the MRDPW 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. After eliminating this transaction, in order to have comparability with the previous year, expenditures as of end-June 2024 are BGN 36.3 billion compared to BGN 31.2 billion as of end-June 2023, which is a nominal increase of 16.1 per cent as compared to the first half of 2023.