31.10.2022

Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) budget balance on a cash basis as of September 2022 is positive, amounting to BGN 989.2 million, or 0.6% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 468.5 million under the national budget and of BGN 520.7 million under EU funds. On a monthly basis, a deficit of BGN 712.3 million is expected for September.

CFP revenues, grants and donations as of September 2022 amount to BGN 44,997.6 million, or 75.4% of the revised annual estimates^[1]. Proceeds grow by BGN 7,155.8 million, or by 18.9% compared to those reported in September 2021. Tax and non-tax CFP revenues grow by BGN 7,139.2 million in nominal terms, while grant and donation proceeds (mostly EU programme and fund grants) are close to those reported for the same period of the previous year.

CFP tax proceeds, including revenues from social security contributions, total BGN 33,996.4 million, which accounts for 73.7% of the tax revenues planned for the year. Tax and social security contribution proceeds grow by BGN 4,395.4 million (14.8%) compared to those reported for the same period of the previous year, forming 75.6% of the overall CFP proceeds for the period.

Direct tax revenues amount to BGN 6,369.4 million, or 70.4% of those planned for the year. Indirect tax proceeds amount to BGN 16,443.9 million (73.8% of the annual estimates), with VAT proceeds amounting to BGN 11,753.1 million (73.4% of those planned), excise duty revenues amounting to BGN 4,307.8 million (74.0% of the estimates), and customs duty proceeds amounting to BGN 344.6 million (90.7% as against the annual estimates). Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 1,210.8 million, or execution of 86.4% of the annual estimates. Revenues from social security and health insurance contributions are BGN 9,972.3 million, which accounts for 74.5% of the estimates for the year.

Non-tax revenues amount to BGN 8,856.0 million (an increase by BGN 2,743.8 million, or 44.9%, compared to the same period of the previous year) and are formed mostly from state, municipal and legal expense revenues, rents, including from payments from revenues from state-owned and municipal enterprises, concession revenues, greenhouse gas emission allowance revenues, etc. It should be noted that implementing §24 of the Transitional and Final Provisions of the 2022 State Budget of the Republic of Bulgaria Law, since July public enterprises from the energy sector have been making payments to the budget of the Electricity System Security Fund which are used to cover the expenditures under Article 36b(1)(4) of the Energy Law. Non-tax revenues therefore report a growth as no such payments were made in 2021. Similarly, in terms of the expenditures for subsidies under the budget of the Electricity System Security Fund, pursuant to §23 of the 2022 State Budget of the Republic of Bulgaria Law compensations are paid to non-household end customers of electricity outside the regulated market, which should also be taken into account when comparing the expenditures with the same period of the previous year.

Grant and donation proceeds amount to BGN 2,145.2 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget as of September 2022, amount to BGN 44,008.4 million, which accounts for 66.8% of the annual estimates. For comparison, the CFP expenditures as of February 2021 amount to BGN 36,777.7 million.

Non-interest expenditures as of September 2022 amount to BGN 42,184.2 million, which accounts for 66.8% of the annual estimates. Non-interest current expenditures amount to BGN 39,612.0 million. Capital expenditures (including net increment of state reserve) amount to BGN 2,545.9 million. The current and capital transfers to other countries amount to BGN 26.3 million. Interest payments amount to BGN 586.8 million, or 88.3% of those planned for 2022.

The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30 September 2022, amounts to BGN 1,237.3 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 30.09.2022 is BGN 13.2 billion, including BGN 12.9 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.3 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 30 September 2022 are published in the Statistics section on the website of the Ministry of Finance. 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] Estimates to the 2022 State Budget of the Republic of Bulgaria Law (State Gazette, issue 18 of 4.3.2022, amended and supplemented in the State Gazette, issue 52 of 5.7.2022).