03.01.2024

Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-November 2023 is negative, amounting to BGN 980.3 million (0.5% of the projected GDP), with a deficit of BGN 4 580.0 million planned in the Law on the 2023 State Budget of the Republic of Bulgaria. On a monthly basis for November, an improvement in the budget balance is reported, with revenues for the month exceeding expenditures by BGN 459.9 million. The improvement in the budget position in November is due to the revenue side of the budget, with the main contribution coming from higher tax receipts.

The higher tax revenue in November was mainly due to the receipts from advance corporate tax payments and the implementation of the measure to upgrade and improve fiscal control by introducing mandatory advance declaration of data on shipments of goods within the territory of the Republic of Bulgaria. This measure was adopted earlier in the year by amendments to the Tax and Social Security Procedural Code (SG No. 66 of 2023, in force as from 1.10.2023) and it began to applied after the adoption of Ordinance No. H-5 on the Terms and Procedures for the Implementation of Fiscal Control over the Movement of Goods with High Fiscal Risk within the territory of the Republic of Bulgaria (SG No. 83 of 3.10.2023, in force as from 3.10.2023).

The CFP revenues, grants and donations as of November 2023 stand at BGN 60,117.6 million, which accounts for 86.5% of the estimates to the Law on the 2023 State Budget of the Republic of Bulgaria. Proceeds grow by BGN 3,652.1 million as compared to those reported in November 2022.

Tax proceeds, including revenues from social security contributions, amount to BGN 47,775.5 million, which accounts for 89.9% of the estimates for the year. Tax and social security contribution proceeds grow by BGN 5,032.9 million (11.8%) compared to those reported for the same period of the previous year, forming 79.5% of the overall CFP proceeds for the period. Direct tax revenues amount to BGN 10,512.3 million or 90.4% of the estimates for 2023. Indirect tax revenues (mostly VAT) amount to BGN 20,623.7 million, which accounts for 88.1% of those planned in the Law on the 2023 State Budget of the Republic of Bulgaria. Proceeds from other taxes, including other taxes under the Corporate Income Tax Law, property and other taxes, amount to BGN 2,574.5 million (including BGN 892.2 million earmarked contributions to the Electricity System Security Fund), or 96.6% of the annual estimates. Revenues from social security and health insurance contributions amount to BGN 14,065.0 million, or 90.9% of those planned for the 2023.

Non-tax revenues amount to BGN 10,201.9 million, which accounts for 91.5% of the annual estimates, and are mostly formed by state, municipal and legal expense revenues, rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation proceeds amount to BGN 2,140.3 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget as of November 2023, amount to BGN 61,098.0 million, which accounts for 82.5% of the annual estimates. In nominal terms, expenditures increase by BGN 4,234.4 million (7.4%) compared to the same period of 2022. Per the individual expenditure indicators, the most significant increase is registered with social security expenditures, as well as in the personnel, capital and other expenditure components. 

Non-interest expenditures amount to BGN 58,778.2 million, which accounts for 83.0% of the annual estimates. Non-interest current expenditures amount to BGN 53,494.8 million. Capital expenditures (including net increment of state reserve) amount to BGN 5,229.9 million. The current and capital transfers to other countries amount to BGN 53.5 million. Interest payments amount to BGN 791.3 million, or 96.1% of those planned for 2023.

The part of Bulgaria’s contribution to the EU budget paid from the central budget as of 30.11.2023 amounts to BGN 1,528.5 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 30.11.2023 is BGN 17.4 billion, including BGN 15.2 billion of fiscal reserve deposits in the BNB and in banks and BGN 2.2 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 30 November 2023 are published in the Statistics section of the website of the Ministry of Finance. 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.