29.05.2015

Based on the monthly data of first-level spending units, a surplus of BGN 1,066.6 millionis reported as of end-April 2015 (1.3 % of the projected GDP). It is formed by the excess of national budget revenues over expenditures of BGN 536.5 million and a surplus of EU funds of BGN 530.1 million. Compared to end-April 2014, the budget stance has improved by 2.3% of GDP. Improvement in the budget stance is mostly due to a growth of tax proceeds and grants, while Consolidated Fiscal Programme expenditures remain lower than those reported in the same period of 2014. It should be noted that while budget balance improvement in the previous months was above all linked to the growth of tax and social security proceeds under the national budget, in April along with this effect we also have the impact of proceeds in the part of EU grants representing expenditures refunded from the previous year.

The revenues and grants under CFP as of 30/04/2015 stand at BGN 11,330.0 million, or 37.3 % of the annual plans for 2015 under the State Budget of the Republic of Bulgaria Law. Compared to the same period of the previous year, revenues and grants have grown by BGN 1,876.3 million, or by 19.8 %.

At end-April tax proceeds, including revenues from social security contributions, total BGN 8,319.8 million, which accounts for 34.6 % of the revised plans for 2015. Compared to 2014, tax revenues have risen in nominal terms by BGN 809.5 million, or by 10.8 %. In structural terms, there is the most considerable growth with regard to proceeds from indirect taxes followed by revenues from social insurance contributions.

Revenues from direct taxes amount to BGN 1,729.9 million, which accounts for 39.3 % of those planned in the 2015 State Budget of the Republic of Bulgaria Law.

Revenues from indirect taxes amount to BGN 3,947.1 million, or 32.6 % of the estimates for 2015. VAT proceeds amount to BGN 2,613.5 million, or 33.8% of the annual plans, and by BGN 359.3 million more than the same period of 2014. The amount of non-refunded VAT as of end-April remains lower than that reported for the same period of the previous year, amounting to BGN 152.6 million. Excise duty revenues amount to BGN 1,271.9 million, or 30.4 % of the annual estimates), while as against April 2014 they grow by BGN 113.8 million, or by 9.8 %. Customs duty proceeds amount to BGN 51.3 million, or 35.5 % of the annual estimates and also report a growth of 10.0 %. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 424.9 million, or 49.1 % of the plans for 2015. Revenues from social security and health insurance contributions are BGN 2,217.9 million, or 33.4 % of those planned for the year. Compared to the same period of the previous year, the revenues from social security contributions have risen by BGN 243.8 million, or 12.3 %, in nominal terms.

Non-tax revenues amount to BGN 1,507.1 million, or 45.1 % of the estimates for 2015.

Proceeds from grants received domestically or from abroad, including EU grants, amount to BGN 1,503.1 million, which accounts for 50.2 % of the estimates for the year. For April only BGN 714.7 million have been received under the EU fund accounts, with the majority of them representing operational programme expenditures reimbursed to Bulgaria from the European Commission. These proceeds result in an improvement in the budget balance on a cash basis for April but the influence of this indicator should be considered in the context of the annual estimates. Traditionally high expenditures under EU fund accounts are expected to be concentrated at the end of the year which will not be refunded to Bulgaria within the calendar year. This in turn is related to a deterioration of the budget balance of EU fund accounts in the last quarter of the year. For this reason, the estimate for the year plans for grants received on account of expenditures made in the previous year to meet the deterioration of the budget balance in case of higher expenditures in the last quarter of 2015.

The expenditures under the consolidated fiscal programme, including the contribution of the Republic of Bulgaria to the EU budget, as of April 2015 amount to BGN 10,263.4 million, which is 31.3 % of the annual plans. Compared to the same period of the previous year the CFP deficit has risen by BGN 54.9 million in nominal terms, or by 0.5 %.

Non-interest expenditures amount to BGN 9,615.2 million or 31.4 % of the annual plans. Non-interest current expenditures as of 30.04.2015 amount to BGN 8,474.5 million, or 33.6 % of the plans, capital expenditures (including net increment of state reserve) amount to BGN 1,140.7 million, or 21.2 % of the plans for 2015. Interest payments amount to BGN 272.1 million, or 31.2 % of the plans for 2015.

The part of Bulgaria's contribution to the EU budget, as paid as of 30/04/2015 from the central budget, amounts to BGN 376.1 million, which complies with Council Regulation (EC, EURATOM) 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.

The fiscal reserve as of 30.04.2015 is BGN 11.1 billion, including BGN 10.9 billion of deposits in BNB and banks and BGN 0.2 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

Data on consolidated fiscal programme implementation as of 30 April 2015 are published on the website of the Ministry of Finance in "Statistics" section. 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.