01.12.2009

The efforts to limit non-interest expenditure and transfers under the executive budget continued in October. The limits of expenditure and transfers were carefully analysed and included the most priority and urgent payments for the month. Thus the accelerated pace of expenditure in the first seven months of the year has already been harnessed and in October a slight excess of revenues over expenditure is reported. For the first four months of the new Government's term the drastic imbalance between the pace of expenditure increase and the slow down of revenues has been overcome on a monthly basis and in October the expenditure have not exceeded the revenues for the month and the budget balance is a slight surplus of BGN 3.3 million.

The expenditure under the consolidated budget (including the contribution of Republic of Bulgaria to the EU general budget) as of 31.10.2009 amounted to BGN 21,088.4 million, which is 69.5% of the annual estimate. Non-interest current expenditure were BGN 16,989.6 million (74.9 % of the estimate for the year); capital expenditure (including the net growth of the state reserve) amounted to BGN 2,989.2 million (57.4 % of the estimates in the 2009 State Budget of the Republic of Bulgaria Law); and interest payments amounted to BGN 490.8 million (77.1% of the projected for 2009).

The part of Bulgaria's contribution to the EU general budget, paid as of October 2009 from the central budget, amounted to BGN 618.8 million which is in compliance with the requirements of Council Regulation 1150/2000.

Revenues and grants amount to BGN 20,542.7 million, or 63.1% of the annual estimate under the 2009 State Budget of the Republic of Bulgaria Law. The reported proceeds are 89.1% on a year-on-year basis.

Tax revenues (including proceeds from security contributions) as of end-October totalled BGN 16,531.1 million, which is 80.5% of the total proceeds under the consolidated fiscal program. Revenues from direct taxes were BGN 3,272.9 million, or 66.2% of those planned for the year. Indirect tax revenues were BGN 8,360,7 million, which is 60.6% of the program for the year. VAT revenues were BGN 5,081.7 million or 78.6% on a year-on-year basis. Excise duty revenues for the period were BGN 3,172.0 million, registering a decrease in nominal terms (by approximately BGN 135.0 million or 4.1%) on a year-on-year basis. The performance against the annual estimate by individual types of taxes in the group is as follows: VAT revenues are 54.5% of those planned in the 2009 State Budget of the Republic of Bulgaria Law, excise duty revenues - 74.5%, and customs duty revenues - 49.7%. Revenues from other taxes (including property taxes and other taxes under the Corporate Income Taxation Law) were BGN 575.1 million or 58.3% of the annual estimate. Revenues from social security and health insurance contributions as of 31.10.2009 were BGN 4,322.4 million or 72.0% of the annual estimate.

Non-tax revenues and grants amounted to BGN 4,011.6 million, or 58.8% of the annual estimate.

As of end-October the budget balance under the consolidated fiscal program was negative, amounting to BGN 545.7 million; it is formed by a deficit under the national budget of BGN 457.6 million and under EU funds of BGN 88.1 million.

The fiscal reserve as of 31.10.2009 was BGN 7,794.4 million.

The data on the implementation of the consolidated budget as of 31 October 2009 are published in "Budget" category/ "Statistics" section on the website of the Ministry of Finance. The statistical data are accompanied by an Information bulletin on the execution of the consolidated budget, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.