02.05.2012

The country's budget stance in Q1 of 2012 has improved in comparison with the same period of 2011, with the CFP deficit on a cash basis being BGN 687.2 million in end-March 2012 against BGN 741.9 million in end-March 2011. The budget balance under the Consolidated Fiscal Programme (CFP) as of March 2012 is formed by a deficit under the national budget of BGN 430.4 million and a deficit under EU funds of BGN 256.8 million. The fiscal reserve as of 31 March 2012 amounts to BGN 4.5 billion.

At end-March CFP revenues and grants stand at BGN 5,955.7 million or 20.7 % of the annual plans. Compared to the same period of 2011, CFP proceeds report a growth by BGN 426.2 million or 7.7 %, which is mostly due to higher VAT revenue (33.4 %). Compared to March 2011, tax revenues rise by 8.2 %, bringing BGN 374.6 million more for the budget. Non-tax revenues and grants also register a growth by BGN 51.6 million (5.4 %) against the same period of 2011.

Tax proceeds, including revenues from social security contributions, total BGN 4,954.6 million as of end-March, which is 83.2 % of total CFP proceeds. Revenues from direct taxes are BGN 1,039.6 million, or 27.1 % of those planned for the year. Indirect taxes amount to BGN 2,442.4 million, or 21.5 % of CFP for the year. VAT revenues amount to BGN 1,554.8 million, or 21.9 % of those planned in the 2012 State Budget Law. Excise duty revenues as of end-March amount to BGN 853.3 million, with performance according to the estimates being 20.7 %. Customs duty revenues amount to BGN 27.9 million, or 23.2 % of those planned for the year. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 183.0 million, or 22.2 % performance of the plans for the year. Revenues from social security and health insurance contributions as of 31 March are BGN 1,289.6 million, or 23.2% of those planned for the year.

Non-tax revenues and grants amount to BGN 1,001.1 million, or 14.0 % of those planned for the year.

Expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31 March amount to BGN 6,642.9 million, or 22.3 % of the planned for the year. In structural terms, compared to March 2011 there is an increase in subsidies and capital expenditures mostly, which is due to the efforts to speed up the absorption of EU programmes and funds. The rise in expenditures for subsidies is due to the earlier payment of subsidies from the State Agriculture Fund to tobacco producers this year, while the rise in capital expenditure is mostly due to higher expenditures under EU operational programmes and funds. Non-interest current expenditures amount to BGN 5,488.2 million (24.4 % of those planned for the year), capital expenditures (including net increment of state reserve) amount to BGN 558.9 million (10.5 % of those planned), while interest payments amount to BGN 289.0 million (40.3 % of those planned in the 2012 budget).

The part of Bulgaria's contribution to the EU budget, as paid in Q1 of 2012 from the central budget, amounts to BGN 306.8 million, which complies with Council Regulation 1150/2000.

Data on consolidated budget implementation as of 31 March 2012 are published in the "Statistics" section on the website of the Ministry of Finance.