28.11.2014

The first level spending units' monthly reports show that the consolidated fiscal programme balance as of end-October is negative to the amount of BGN 1,760.1 million.

Consolidated revenues and grants under CFP as of 31 October 2014 stand at BGN 24,020.7 million, or 80.1% of the annual plans for 2014 under the amended State Budget Law^[1]. The parameters of revenue performance under the national budget as of end-October correspond to the revenue framework under the revised annual plan. Compared to the same period of the previous year the deficit under the CFP as of end-October has risen by BGN 269.4 million in nominal terms (1.1%), the basic effect of one-off revenues in the first half of 2013 in the non-tax revenues (from dividends for the state and a sum awarded to the state totalling BGN 303 million) should be taken into account.

At end-October tax proceeds, including revenues from social security contributions, total BGN 19,154.7 million, which is 82.2% of the amended 2014 plans. Compared to the same period of the previous year tax revenues under the CFP have risen by 3.7% (BGN 684.1 million) in nominal terms

Revenues from direct taxes amount to BGN 3,436.8 million, or 80.3% of the amended annual plans, and are by BGN 286.7 million higher than the same period of the previous year (9.1%).  Corporation tax revenues report growth of 4.9% (BGN 58.1 million). Increase as of end-October 2014 is also reported in the revenues under PITL - by BGN 228.6 million or 11.6% more than for the same period of last year.

Revenues from indirect taxes amount to BGN 9,737.3 million, or 81.6% of the amended annual plans. Compared to the same period of the previous year tax revenues under the CFP have risen by BGN 117.5 million in nominal terms.

VAT revenues amount to BGN 6,219.0 million or 80.8% of the annual plan. Compared to the same period of the previous year VAT revenues have risen by BGN 113.7 million. Excise duty revenues amount to BGN 3,370.5 million or 83.0% of the annual plan. Excise duty revenues as of end-October 2014 remain at their reported level for the same period of last year. Custom duties revenues are BGN 124.8 million or 83.5% of the annual plan. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 722.5 million, or 89.2% of the amended plans for 2014. Revenues from social security and health insurance contributions are BGN 5,258.0 million, or 83.7% of those planned for the year. Compared to the same period of the previous year these revenues have risen by 5.1% (BGN 255.9 million) in nominal terms

Non-tax revenues amount to BGN 2,985.6 million or 86.9% of the amended annual plans. This is by BGN 216.3 million less than for the same period of last year which is due to the basic effect of one-off revenues in the first six months of 2013 from dividends for the state and a sum awarded to the state under an arbitration case.

Grants from the country and abroad (including grants from EU Funds) amount to BGN 1,880.4 million or 58.1% of the amended annual plan.

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, as of 31.10.2014 amount to BGN 25,780.8 million, which is 78.2% of the amended annual plans. Compared to October 2013 expenditure under the CFP have risen by BGN 1,586.6 million (6.6%), mainly due to the accelerated absorption under European programmes and funds, and to social and health insurance payments growth. Expenditure under the EU funds accounts (including national co-financing) have risen by 30.1% (BGN 802.7 million) compared to the same period of 2013 and expenditure under the national budget - by 3.6% (BGN 783.9 million). The growth in social expenditure is mainly due to the basic effect of the increase of pensions as from 1 April 2013 and to higher health insurance payments in 2014.

Non-interest expenditures amount to BGN 24,517.7 million or 81.8% of the amended annual plans. Non-interest current expenditure for the ten months of 2014 amount to BGN 20,973.8 million, or 84.2% of the plans, capital expenditure (including net increment of state reserve) amount to BGN 3,543.9 million, or 69.8 % of the amended plans for 2014. Interest payments amount to BGN 520.1 million, or 77.6% of the plans for 2014.

The part of Bulgaria's contribution to the EU budget, as paid as of 31.10.2014 from the central budget, amounts to BGN 743.0 million, which complies with Council Regulation 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.

The budget balance on a cash basis under the Consolidated Fiscal Programme (CFP) as of October 2014 is negative, amounting to BGN 1,760.1 million and is formed by a deficit under the national budget of BGN 693.8 million and a deficit under EU funds of BGN 1,066.3 million.

Fiscal reserve as of 31.10.2014 is BGN 8.7 billion, including BGN 7.6 billion deposits in BNB and banks and BGN 1.1 billion receivables under the EU Funds for certified expenditure, advance payments, etc. In accordance with §1, point 41 of the Public Finances Law Additional Provisions the fiscal reserve scope has been changed to include the receivables under the EU Funds for certified expenditure, advance payments, etc.

Data on the consolidated programme implementation as of 31 October 2014 are published on the website of the Ministry of Finance in category Topical Publications/Statistics. The statistical data are accompanied by an Information Bulletin on the Execution of the State Budget and the main indicators of the consolidated fiscal programme, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.

Law amending the 2014 Law on the State Budget of the Republic of Bulgaria (promulgated SG No 98/28.1.2014).