28.04.2023

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 as of March 2023 is negative, amounting to BGN 662.4 million (0.4% of the projected GDP), and is formed by a deficit of BGN 641.0 million under the national budget and a deficit of BGN 21.4 million under the EU funds. For comparison, a surplus of BGN 294.7 million was reported for Q1 of 2022, which means that the budget balance for the period deteriorates by BGN 957.2 million on an annual basis. The trend from the first two months of the year of expenditure growth (27 per cent) significantly outpacing revenue growth (18.6 per cent) continues, which is the main reason for the deterioration of the budget stance compared to the previous year.

CFP revenues, grants and donations amount to BGN 14,691.8 million as of March 2023. Proceeds grow by BGN 2,308.2 million, or by 18.6%, compared to those reported in March 2022. Tax and non-tax CFP revenues grow by BGN 2,355.2 million in nominal terms, while grant and donation proceeds (mostly EU programme and fund grants) are by BGN 47.0 million less than those reported for the same period of the previous year.

Tax proceeds, including revenues from social security contributions, amount to BGN 11,817.2 million. Tax and social security contribution proceeds grow by BGN 1,942.0 million (19.7%) compared to those reported for the same period of the previous year, forming 80.4% of the overall CFP proceeds for the period. Direct tax revenues amount to BGN 1 426.2 million, increasing by BGN 178.7 million (14.3%) compared to those reported in March 2022. Indirect tax revenues amount to BGN 5,697.0 million (an increase by BGN 508.7 million, 9.8%, compared to those reported in March 2022). Proceeds from other taxes, including other taxes under the Corporate Income Tax Law, property and other taxes, amount to BGN 1,079.2 million (including BGN 552.5 million earmarked contributions to the Electricity System Security Fund), or an increase by BGN 690.4 million compared to March 2022. Revenues from social security and health insurance contributions amount to BGN 3,614.8 million, representing an increase by BGN 564.2 million (18.5%) compared to the ones reported in the same period of 2022.

Non-tax revenues amount to BGN 2,440.5 million (an increase by BGN 413.2 million, or 20.4%, compared to the same period of the 2022) and are formed mostly from state, municipal and legal expense revenues, rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation proceeds amount to BGN 434.1 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for March 2023, amount to BGN 15,354.3 million. For comparison, the CFP expenditures as of March 2022 amount to BGN 12,088.9 million. In nominal terms, expenditures increase by BGN 3,265.4 million (27.0%) compared to the first three months of 2022 (27.0 %). As per individual expenditure items, the most significant increase is registered with pension expenditures (BGN 1,050.2 million), as well as maintenance expenditures (BGN 652.6 million), staff costs (BGN 628.2 million), subsidy expenditures (BGN 604.8 million), etc. The growth of expenditures is due to some pieces of legislation that have become effective, including amendments in the pension field, current programmes compensating electricity consumers, settlement of liabilities under the budget of the Ministry of Regional Development and Public Works, increased salary levels in a number of administrations, etc.

Non-interest expenditures amount to BGN 14,595.9 million (an increase by BGN 3,244.6 million, or 28.6%, compared to those reported for March 2022). Non-interest current expenditures amount to BGN 13,659.9 million. Capital expenditures (including net increment of state reserve) amount to BGN 929.0 million. The current and capital transfers to other countries amount to BGN 7.0 million. Interest payments amount to BGN 303.1 million (a decrease by BGN 32.7 million, or 9.7% compared to the same period of 2022).

The part of Bulgaria’s contribution to the EU budget paid from the central budget as of 31.03.2023 amounts to BGN 455.2 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 31.03.2023 is BGN 12.6 billion, including BGN 12.0 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.6 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 31 March 2023 are published in the Statistics section on 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.