27.02.2015

The first level spending units' monthly reports show that the consolidated fiscal programme balance as of end-January 2015 is positive to the amount of BGN 69.1 million (0.1 % of forecast GDP) and is formed by a surplus under the national budget of BGN 227.4 million and a deficit under EU funds of BGN 158.4 million. Compared to January 2014 the budget position has improved by 0.6 % of GDP. It should also be noted that on a monthly basis for the first time since 2009 a surplus is reported for January. The improvement of the budget position is mainly due to growth in tax revenues while expenditures under the consolidated fiscal programme remain close to those reported for the same period of the previous year.

Consolidated revenues and grants under CFP as of 31.01.2015 stand at BGN 2,471.6 million, or 8.1 % 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 400.7 million (19.3%).

Tax proceeds for January, including revenues from social security contributions, total BGN 2,172.5 million, which is 9.0 % of the annual plans. Compared to 2014 tax revenues have risen by 21.0 % (BGN 376.9 million) in nominal terms. In structural terms the highest growth is reported in indirect tax revenues, followed by revenues from social security and health insurance contributions.

Revenues from direct taxes amount to BGN 257.0 million, or 5.8 % of the 2015 Annual Budget Law plans, and are by BGN 1.5 million higher than the previous year (0.6 %). Growth in January 2015 is reported in corporation tax revenues, while personal income tax revenues are lower compared to the first month of 2014, which is due to a basic effect of the introduced at the beginning of 2013 legislative changes under which part of the these taxes that had to be paid for 2013 was paid in January 2014.

Indirect tax revenues amount to BGN 1,344.2 million, or 11.1 % of the 2015 Annual Budget Law plans. VAT revenues amount to BGN 975.3 million, or 12.6 % of the annual plans. Compared to the previous year VAT revenues have grown by BGN 323.1 million, mainly due to the higher VAT amount for December 2014 declared for payment in January 2015 and the lower amount of the VAT refunded. The non-refunded VAT amount as of end-January is considerably lower than the one reported for the same period of the previous year and stands at BGN 101.7 million. Growth is reported in excise duty revenues which amount to BGN 352.4 million (8.4 % of the annual plans), and compared to January 2014 have risen by 3.3 % or BGN 11.4 million. Custom duties revenues are BGN 13.1 million, or 9.1 % of the annual plan, and also report growth by 7.9 %. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 45.1 million, or 5.2 % of the plans for 2014. Revenues from social security and health insurance contributions are BGN 526.1 million, or 7.9 % of those planned for the year. Compared to the previous year these revenues have risen by 7.5 % (BGN 36.6 million) in nominal terms

Non-tax revenues amount to BGN 263.7 million or 7.9 % of the annual plans. This is by BGN 22.1 million (9.1 %) more compared to January 2014 which is due to revenues from the sale of greenhouse gas emission allowances and the higher amount of proceeds from state charges.

Grants from the country and abroad (including grants from EU Funds) amount to BGN 35.5 million or 1.2 % of the annual plan.

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, for January 2015 amount to BGN 2,402.5 million, which is 7.3 % of the annual plans. Compared to January 2014 expenditure under the CFP are lower by BGN 41.7 million (1.7 %) and this decrease is reported mainly in health insurance payments, subsidies and maintenance expenditures.

Non-interest expenditures amount to BGN 2,125.9 million or 6.9 % of the annual plans. Non-interest current expenditure for January 2015 amount to BGN 1,918.3 million, or 7.6 % of the plans, capital expenditure (including net increment of state reserve) amount to BGN 207.6 million, or 4.0 % of the plans for 2015. Interest payments amount to BGN 200.8 million, or 23.0 % of the plans for 2015.

The part of Bulgaria's contribution to the EU budget, as paid as of 31.01.2015 from the central budget, amounts to BGN 75.8 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.

Fiscal reserve as of 31.01.2015 is BGN 7.1 billion, including BGN 5.8 billion deposits in BNB and banks and BGN 1.3 billion receivables under the EU Funds for certified expenditure, advance payments, etc.

Data on the consolidated programme implementation as of 31 January 2015 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.