01.03.2023

Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) budget balance on a cash basis for January 2023 is positive, amounting to BGN 470.6 million, or 0.3% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 399.9 million under the national budget and of BGN 70.7 million under EU funds. Although CFP revenues increase as compared to the same period of the previous year, the bigger growth of expenditures results in a deterioration of the budget balance in comparison to the one reported for January 2022 (an excess of CFP revenues over expenditures of BGN 937.0 million was reported in January 2022). The growth of expenditures is due to some pieces of legislation that have become effective, including in the pension field, current programmes compensating electricity consumers outside the regulated market, etc..

CFP revenues, grants and donations for January 2023 amount to BGN 4,865.6 million. Proceeds grow by BGN 544.5 million, or by 12.6% compared to those reported in January 2022. CFP tax and non-tax revenues grow by BGN 463.7 million in nominal terms, while grant and donation proceeds (mostly EU programme and fund grants) are by BGN 80.7 million more than those reported for the same period of the previous year.

CFP tax proceeds, including revenues from social security contributions, total BGN 3,981.4 million. Tax and social security contribution proceeds grow by BGN 428.1 million (12.0%) compared to those reported for the same period of the previous year, forming 81.8% of the overall CFP proceeds for the period. Direct tax revenues amounted to BGN 488.7 million, increasing by BGN 80.2 million (19.6%) compared to those reported in January 2022. Indirect tax revenues amount to BGN 1,914.9 million (a decrease by BGN 166.4 million, 8.0% compared to January 2022), with VAT revenues amounting to BGN 1,399.3 million (a decrease by 7.0% compared to January 2022), excise duty revenues amounting to BGN 476.5 million (a decrease by 9.9% compared to the same period of the previous year) and customs duty revenues amounting to BGN 28.5 million (a decrease by 22.7% compared to January 2022). Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 419.0 million (including BGN 322.0 million earmarked contributions to the Electricity System Security Fund from electricity producers and traders, in accordance with § 8 of the Transitional and Final Provisions of the Law Implementing the Provisions of the 2022 State Budget of the Republic of Bulgaria Law, the 2022 Public Social Insurance Budget Law and the 2022 NHIF Budget Law), or an increase by BGN 338.5 million compared to those reported for January 2022. Revenues from social security and health insurance contributions amount to BGN 1,158.9 million, representing an increase of BGN 175.8 million (17.9%) compared to the same period of 2022.

Non-tax revenues amount to BGN 688.0 million (an increase by BGN 35.6 million, or 5.5%, compared to the same period of the 2022) and are formed mostly from state, municipal and legal expense revenues, rents, including from payments from revenues from state-owned and municipal enterprises, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation proceeds amount to BGN 196.2 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for January 2023, amount to BGN 4,395.1 million. For comparison, the CFP expenditures for January 2022 amount to BGN 3,384.1 million. The most considerable increase is registered for social expenditures, in particular pension expenditures, which increase by BGN 379.7 million in nominal terms, followed by subsidy costs which increase by BGN 264.7 million mostly due to the existing programmes compensating non-household electricity consumers. There is an increase in capital expenditures, staff costs and maintenance costs.

Non-interest payments amount to BGN 4,252.7 million (an increase of BGN 1,033.8 million, or 32.1%, compared to those reported for January 2022). Non-interest current expenditures amount to BGN 3,982.0 million. Capital expenditures (including net increment of state reserve) amount to BGN 269.3 million. The current and capital transfers to other countries amount to BGN 1.4 million. Interest payments amount to BGN 30.3 million (a decrease by BGN 1.8 million, or 5.5% compared to January 2022).

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31 January 2023, amounts to BGN 112.0 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 31.01.2023 is BGN 16.4 billion, including BGN 15.2 billion of fiscal reserve deposits in the BNB and in banks and BGN 1.2 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 31 January 2023 are published on the website of the Ministry of Finance, in Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.