01.07.2015

The first level spending units' monthly reports show that the Consolidated Fiscal Programme had a surplus of BGN 1 091,1 million (1,3% of projected GDP) as at the end of May 2015 It is formed by a surplus of revenues over expenditures under the national budget of BGN 561,6 million and a surplus under EU funds of BGN 529,5 million. In comparison, at the end of May 2014 the budget balance under CFP was a deficit to the amount of BGN 888,6 million (1,1% of GDP), i.e., if referred to GDP, the budget position has improved by 2,4 percentage points. The improvement of the budget position is mainly due to growth in tax revenues and grants while expenditures remain close in nominal terms to those reported for the same period of 2014.

The revenues and grants under CFP as of 31.05.2015 stand at BGN 13 818,6 million, or 45,5% of the plans under the 2015 Annual Budget Law. Compared to the same period of the previous year revenues and grants have risen by BGN 2 042,5 million (17,3%). In structural terms tax revenues have increased by BGN 847,9 million (9,0%), non-tax revenues - by BGN 178,3 million (11,3%), and receipts from grants (mainly EU funds) - by BGN 1 016,3 million (133,4%).

Tax proceeds at end-May, including revenues from social security contributions, total BGN 10 283,9 million, which is 42,8% of the annual plans. In the group of tax revenues, all key taxes and security contributions have registered growth as compared to the same period of the previous year, with the highest increase being that of proceeds in the group of indirect taxes, followed by revenues from health and social security contributions.

Revenues from direct taxes amount to BGN 2 055,0 million, or 46,7% of the 2015 annual plans. Compared to the first five months of the previous year the revenues in this group have increased by 3,7%, mainly driven by the higher proceeds from local and foreign persons' income tax, the dividend tax and the liquidation quota tax.

Indirect tax revenues amount to BGN 4 980,3 million, or 41,2% of the 2015 Annual Budget Law plans. VAT revenues amount to BGN 3 266,7 million or 42,2% of the annual plan and by BGN 331,1 million more compared to the same period of 2014. The non-refunded tax credit to companies as of 31.05.2015 amounts to BGN 113,6 million. Excise duty revenues amount to BGN 1 638,5 million (39,2% of the annual plans), growing by 8,7%, or BGN 131,8 million, compared to May 2014. Custom duty revenues are BGN 63,4 million or 43,8% of the annual plans, increasing by 8,1%. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 470,0 million, or 54.3% of the annual estimates.  Revenues from social security and health insurance contributions are BGN 2 778,6 million, or 41,8% of those planned for the year. Compared to the same period of the previous year these revenues have risen by 11,0% (BGN 275,9 million) in nominal terms

Non-tax revenues amount to BGN 1 756,4 million or 52,5% of the annual plans.

Grants from the country and abroad (including grants from EU Funds) amount to BGN 1 778,3 million or 59,4% of the annual plan. As regards grants, only in May BGN 270,6 million have been received in the EU funds accounts, the major part thereof being expenditures reimbursed by the European Commission to Bulgaria under the operational programmes.

The expenditures under the Consolidated Fiscal Programme, including the contribution of the Republic of Bulgaria to the EU budget, as of end-May 2015 amount to BGN 12 727,5 million, which is 38,8% of the annual plans. Compared to the same period of the previous year, total CFP expenditures have slightly risen - by BGN 62,9 million (0.5%).

Non-interest expenditures amount to BGN 11 983,6 million or 39,1% of the annual plans. Non-interest current expenditures as of 31.05.2015 amount to BGN 10 512,0 million, or 41,7% of the annual plans, capital expenditures (including net increment of state reserve) amount to BGN 1 471,6 million, or 27,3% of the plans under the 2015 Annual Budget Law. Interest payments amount to BGN 293,0 million, or 33,6% of the plans for 2015.

The part of Bulgaria's contribution to the EU budget, paid as of 31.05.2015 from the central budget, amounts to BGN 450,9 million, which complies with the current legislation on EU own resources, Council Decision 2007/436/EC, Euratom on the system of the Communities' own resources and Regulation (EC, Euratom) No 1150/2000 implementing Decision 2007/436/EC.

Fiscal reserve as of 31.05.2015 is BGN 11,1 billion, including BGN 11,0 billion deposits in BNB and banks and BGN 0,1 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

The data on the Consolidated Fiscal Programme implementation as of 31 May 2015 are published on the website of the Ministry of Finance in category "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.