29.09.2023

Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of August 2023 is close to balanced (a minimum deficit of BGN 51.9 million).

CFP revenues, grants and donations as of August 2023 amount to BGN 42,475.1 million, or 61.1% of the annual estimates^[1]. Proceeds grow by BGN 3,170.2 million, or by 8.1%, compared to those reported in August 2022. Tax and non-tax CFP revenues grow by BGN 3,607.3 million in nominal terms, while grant and donation proceeds (mostly EU programme and fund grants) are by BGN 437.1 million less than those reported for the same period of the previous year.

Tax proceeds, including revenues from social security contributions, amount to BGN 33,072.1 million, which accounts for 62.2% of the estimates for the year. Tax and social security contribution proceeds grow by BGN 2,955.0 million (9.8%) compared to those reported for the same period of the previous year, forming 77.9% of the overall CFP proceeds for the period. Direct tax revenues amount to BGN 6,762.9 million or 58.2% of the estimates for 2023. Indirect tax revenues (VAT mostly) amount to BGN 14,321.6 million (61.2% of the estimates for the year). Proceeds from other taxes, including other taxes under the Corporate Income Tax Law, property and other taxes, amount to BGN 953.2 million (including BGN 699.6 million earmarked contributions to the Electricity System Security Fund) or 73.3% of the annual estimates. Revenues from social security and health insurance contributions amount to BGN 10,034.5 million, or 64.9% of those planned for the 2023.

Non-tax revenues amount to BGN 7,807.1 million, which accounts for 70.0% of the annual estimates, and are mostly formed by state, municipal and legal expense revenues, rents, concession revenues, greenhouse gas emission allowance revenues, etc.

Grant and donation proceeds amount to BGN 1,595.9 million.

CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for August 2023, amount to BGN 42,527.0 million, which accounts for 57.4% of the annual estimates. In nominal terms, expenditures increase by BGN 4,923.6 million (13.1%) compared to the same period of 2022. In the individual expenditure indicators, the most significant increase is registered with pension expenditures, as well as in the personnel, capital and other expenditure components. 

Non-interest expenditures amount to BGN 41,027.6 million, which accounts for 57.9% of the annual estimates. Non-interest current expenditures amount to BGN 37,870.6 million. Capital expenditures (including net increment of state reserve) amount to BGN 3,113.2 million, The current and capital transfers to other countries amount to BGN 43.8 million. Interest payments amount to BGN 386.3 million, or 46.9% of those planned for 2023.

The part of Bulgaria’s contribution to the EU budget paid from the central budget as of 31.08.2023 amounts to BGN 1,113.2 million, which complies with the existing legislation in the area of EU own resources.

The fiscal reserve as of 31.08.2023 is BGN 12.36 billion, including BGN 12.05 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.31 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Consolidated Fiscal Programme implementation data as of 31 August 2023 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 2023 State Budget of the Republic of Bulgaria Law (promulgated in issue 66 of 04.03.2022 of the State Gazette).