01.03.2012

The budget balance under the Consolidated Fiscal Programme (CFP) as of end-January 2012 is negative, amounting to BGN 297.8 million and is formed by a deficit under the national budget of 209.1million and a deficit under EU funds of BGN 88.7 million. Just for comparison, the deficit in January 2011 amounts to BGN 477.3 million or the budget stance as of January 2012 has improved by BGN 179.5 million compared to same period of last year.

The fiscal reserve as of end-January 2012 amounts to BGN 4.0 billion which is down by around BGN 1.0 billion compared to end-December 2011. The factors influencing the size of the fiscal reserve in January 2012 are mostly operations in the financing part, i.e. service payments of Republic of Bulgaria's domestic and external debt and payments to farmers. In addition to the sizeable GS repayments of BGN 0.3 billion in the financing part, interest rates of bonds issued and traded on international markets totaling almost BGN 0.2 billion were paid in January. The Paying Agency to State Agriculture Fund made a tranche of payments under the single area payment scheme and under the 2011 national co-financing scheme totaling BGN 743.2 million, of which BGN 645.5 at the expense of EU and to be reimbursed in a future period. Unlike previous years, in view of supporting farmers, these payments were made as early as possible, i.e. in January. This leads to a provisional diminishing of fiscal reserve resources until single area payment scheme funds paid from the national budget are reimbursed by the Commission.

At end-May CFP revenues and grants stand at BGN 1,900.0 million or 6.6 % of those planned in the 2012 State Budget Law. Compared to the same period of 2011, proceeds report a nominal growth by BGN 224.6 million or 13.4 %, which is mostly due to higher VAT revenue.

Tax proceeds, including revenues from social security contributions, total BGN 1,633.9 million as of end-January, which is 7.6 % of total CFP proceeds. Revenues from direct taxes are BGN 241.9 million, or 6.3 % of those planned for the year. Indirect taxes amount to BGN 938.4 million, or 8.3 % of CFP for the year. VAT revenues amount to BGN 588.9 million, or 8.3 % of those planned in the 2012 State Budget Law. Excise duty revenues as of end-January amount to BGN 338.2 million, with performance according to the estimates being 8.2 %. Customs duty revenues amount to BGN 8.7 million, or 7.3 % 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 45.8 million, or 5.5 % performance of the plans for the year. Revenues from social security and health insurance contributions as of 31 January are BGN 407.8 million, or 7.1 % of those planned for the year.

Non-tax revenues and grants amount to BGN 266.1 million, or 3.7 % of those planned for the year.

The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of 31 January amount to BGN 2,197.8 million, or 7.4 % of the planned for the year. Compared to January 2011, there is a rise in expenditures by BGN 45.0 million (2.1 %) mostly due to the national co-financing of direct payments to farmers in January 2012. In addition to that sizeable debt service payments are usually made in January in accordance with the government debt service calendar.

Non-interest current expenditures amount to BGN 1,777.5 million (7.9 % of those planned for the year), capital expenditures (including net increment of state reserve) amount to BGN 120.9 million (2.3 % of those planned), while interest payments - to BGN 237.4 million (33.3 % of those planned in the 2012 budget). In accordance with the specificities of the interest rate calendar, BGN 188,9 million of external debt interest rates and BGN 48.6 million of domestic debt interest rates were paid in January.

The part of Bulgaria's contribution to the EU budget, as paid as of end-January 2012 from the central budget, amounts to BGN 62.0 million, which complies with Council Regulation 1150/2000.

Data on consolidated budget implementation as of 31 January 2012 are published in "Statistics" section on the website of the Ministry of Finance. The statistical data are accompanied by an Information Bulletin on the Execution of the Consolidated Budget, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.