02.11.2009

The data on the implementation of the consolidated budget as of 30 September 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 for the first nine months of 2009, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.

Revenues and grants under the consolidated fiscal program as of end-September stood at BGN 18 525,3 million, or 56,9% of the annual estimate under the 2009 State Budget of the Republic of Bulgaria Law. The reported proceeds are 88.8% on a year-on-year basis.

Tax revenues (including proceeds from security contributions) as of end-September totaled BGN 14 868,0 million, which is 80.3% of the total proceeds under the consolidated fiscal program. Revenues from direct taxes were BGN 3 021,8 million, or 61.1 % of those planned for the year. Indirect tax revenues were BGN 7 455,0 million, which is 54.0% of the program for the year. VAT revenues were BGN 4 516,8 million or 77.4% on a year-on-year basis. Excise duty revenues for the period were BGN 2 839,6 million, registering a slight decrease in nominal terms (by approximately BGN 81,1 million or 2,8%) 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 48,5% of those planned in the 2009 State Budget of the Republic of Bulgaria Law, excise duty revenues - 66,7%, and customs duty revenues - 45,8%. Revenues from other taxes (including property taxes and other taxes under the Corporate Income Taxation Law) were BGN 512,7 million or 52,0% of the annual estimate. Revenues from social security and health insurance contributions as of 30.09.2009 were BGN 3 878,5 million or 64,6% of the annual estimate.

Non-tax revenues were BGN 2 611,2 million, or 68,4% of the annual estimate. The grants received (mainly advance payments from the EU Structural Funds and the Cohesion Fund to the budget of the National Fund, and payments from the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF) to the budget of the Paying Agency to SF Agriculture) for the first nine months of 2009 were BGN 1 046,1 million (34.7 % of those planned).

The expenditures under the consolidated budget (including the contribution of Republic of Bulgaria to the EU general budget) as of 30.09.2009 amounted to BGN 19 077,5 million, which is 62,8% of the annual estimate. Non-interest current expenditures were BGN 15 296,4 million (67,4 % of the estimate for the year); capital expenditures (including the net growth of the state reserve) amounted to BGN 2 772,0 million (53,2 % of the estimates in the 2009 State Budget of the Republic of Bulgaria Law); and interest payments amounted to BGN 476,7 million (74,9% of the projected for 2009). The part of Bulgaria's contribution to the EU general budget, paid as of September 2009 from the central budget, amounted to BGN 532,4 million which is in compliance with the requirements of Council Regulation 1150/2000.

As of end-September the budget balance under the consolidated fiscal program was negative, amounting to BGN 552,3 million; it is formed by a deficit under the national budget of BGN 590,5 million and excess of revenues over expenditures under EU funds of BGN 38,2 million.

The measures taken to stabilize the fiscal position are already having results. The budget deficit on a monthly basis has decreased more than 5 times yet in August as compared to July. The deficit in July was BGN 564,3 million; in August it was BGN 92,3 million; and in September it further contracted to 73,6. For the time being the improvement of the budget balance on a monthly basis is ensuing only from the strict curbing of expenditures. In the last quarter of the year the measures to increase revenue collection are also expected to have effect, thus all efforts being targeted at achieving a stable budget stance at the end of the year. This would also allow the fiscal reserve to be kept at a relatively stable level which, as part of the foreign currency reserve of the country, is in support of the currency board.

The fiscal reserve as of 30.09.2009 was BGN 7 691,4 million.