31.01.2020

Based on the monthly data on cash execution of first-level spending units, CFP revenues, grants and donations in 2019 amount to BGN 44,048.5 million or 100.4% of the annual estimates. Compared to the previous year, they have grown by BGN 4,397.7 million in nominal terms, including tax and non-tax revenues – by BGN 4,047.1 million (10.8%), and grant and donation proceeds (mostly EU programme and fund grants) – by BGN 350.6 million (16.6%).

Tax proceeds, including revenues from social security contributions, total BGN 35,279.8 million, which accounts for 102.1% of the tax revenues planned for the year.

Direct tax revenues amount to BGN 6,714.8 million, or 102.4% of those planned for the year.

Indirect tax revenues amount to BGN 16,847.7 million, which accounts for 102.5% of the annual estimates. VAT proceeds amount to BGN 11,086.1 million, or 102.4% of those planned. Excise duty revenues amount to BGN 5,486.0 million, or 102.9% of the annual estimates. Customs duty proceeds amount to BGN 230.9 million, or 97.5% of the annual estimates.

Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 1,170.9 million, or 100.1% of the annual estimates.

Revenues from social security and health insurance contributions are BGN 10,546.3 million, which accounts for 101.6% of the estimates for the year.

Non-tax revenues amount to BGN 6,305.1 million, or 95.1% of the annual estimates.

Grant and donation proceeds amount to BGN 2,463.6 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for 2019, amount to BGN 45,196.9 million, which accounts for 97.6% of the annual estimates[1]. The nominal increase in expenditures in comparison to the same period of the previous year is due to the higher capital expenditures (due to the higher national budget expenditures, including those related to the implementation of the investment project for the acquisition of a new type of military aircraft for the Bulgarian air forces, as well as under the EU fund accounts),the staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), the increase in subsidy costs, etc.

Non-interest expenditures amount to BGN 43,354.7 million, which accounts for 98.2% of the annual estimates. Non-interest current expenditures for 2019 amount to BGN 35,743.7 million, capital expenditures (including net increment of state reserve) amount to BGN 7,567.2 million. The current and capital transfers to other countries amount to BGN 43.7 million. Interest payments amount to BGN 649.1 million, or 97.0% of those planned for 2019.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget in 2019, amounts to BGN 1,193.1 million, which complies with the existing legislation in the area of EU own resources, i.e. Council Decision 2014/335/EU on the system of own resources of the European Union, Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union and Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements, as amended by Council Regulation (EU, Euratom) 2016/804 of 17 May 2016.

The CFP budget balance on a cash basis for 2019 is negative, amounting to BGN 1,148.3 million, or 0.97% of the projected GDP, and is formed by a national budget deficit of BGN 1,040.8 million and by a EU funds deficit of BGN 107.5 million. Compared to the estimates as per the Law Amending the 2019 State Budget of the Republic of Bulgaria Law, a nominal improvement in the budget balance by about BGN 1.3 billion is reported. The deficit reported for 2019 is due to the one-off costs related to the implementation of the investment project for the acquisition of a new type of multifunctional military aircraft for the Bulgarian air forces.

The fiscal reserve as of 31.12.2019 is BGN 8.8 billion, including BGN 8.6 billion of deposits in BNB and banks and BGN 0.2 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The 2019 Consolidated Fiscal Programme implementation data are published on the website of the Ministry of Finance, in Statistics section. 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.

[1] Updated estimates as per the Law Amending the 2019 State Budget of the Republic of Bulgaria Law.