29.05.2015

Based on preliminary data and estimates the budget balance under the Consolidated Fiscal Programme (CFP) on a cash basis as of end-May 2015 is expected to be a surplus to the amount of around BGN 1,150 million (1.4% of forecast GDP). May will be the third consecutive month when a surplus is reported on a monthly basis under the CFP after the minor deficit in February. This is also the biggest surplus for the first five months since 2008. 

The current forecast for the revenues exceeds the estimate of the Ministry of Finance of 27 May by around BGN 50 million, this being related mainly to the higher tax proceeds during the last days of the month. The forecast for the expenditures under the CFP is also corrected which is reflected in lowering the expected budget surplus under the CFP as of the end of May compared to the previous forecast. However, it should be noted that the increase of expenditures is related mainly to the absorption of the funds under the operational programmes and the EU Funds, the higher expenditure compared to the previous forecast being for municipalities beneficiaries under the EU funds accounts. The expenditure amount under the CFP for the first five months of 2015 remains in nominal terms close the one reported for the same period of the previous year.

For comparison the balance for the first five months of 2014 was deficit to the amount of BGN 888.6 million, (1.1% of GDP) which means that compared to the same period of the previous year the budget stance has improved by BGN 2,038.6 million or 2.5% of GDP. The higher revenues and the balance improvement under the EU funds accounts, related to the significant receipts in April, continue to be the main factors for the improved budget stance as of May 2015.

Key CFP parameters on the basis of preliminary data and estimates

Revenues and grants under CFP for the first five months of 2015 are expected to be around BGN 13,840 million, (45.6% of the plans). As of end-May, revenues register a significant growth of 17.5% (BGN 2,064 million) compared to the same period of 2014. The growth as compared to the previous year is due to the higher tax and non-tax revenues to the amount of BGN 1,049 million as well as to the higher receipts in terms of grants (funds reimbursed by the European Commission) to the amount of BGN 1,015 million.

On the basis of operational data and assessments the expenditures under the Consolidated Fiscal Programme (including the contribution of the Republic of Bulgaria to the EU budget) as of May 2015 amount to approximately BGN 12,609 million, which is 38.6% of the annual plan. The expenditures for the same period of the previous year are to the amount of BGN 12,664.6 million.

The part of Bulgaria's contribution to the EU budget, as paid for the first five months of 2015 from the central budget, amounts to BGN 450.9 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 statistical data and the Information Bulletin on the Execution of the Consolidated Budget as of 31.05.2015 based on data from the monthly reports on the cash performance of the budgets of the first-level spending units will be published on the website of the Ministry of Finance at the end of June 2015.