site.btaBudget Balance Positive at Lv 713.3 Mln as of February

Based on data from the monthly reports on the cash performance of the budgets of first-level spending units, the budget balance of the Consolidated Fiscal Programme (CFP) on a cash basis as of February 2022 was positive, amounting to 713.3 million leva (0.5 per cent of forecast GDP), the Finance Ministry reported. This positive budget balance was formed by an excess of revenues over expenditures under the national budget of 648.9 million leva and under EU funds amounting to 64.4 million leva.

The CFP revenues, grants and donations as of February 2022 amounted to 8,009.4 million leva, or 14.0 per cent of the annual estimates. Proceeds increased by 715.1 million leva (9.8 per cent) compared to those reported as of February 2021. Tax and non-tax proceeds under the CFP rose by 771.3 million leva in nominal terms, while proceeds from grants and donations (mostly EU programme and fund grants) decreased by 56.1 million leva as compared to the amount reported for the same period of 2021.

Tax proceeds under the CFP, including revenues from social security and health insurance contributions, totaled 6,318.9 million leva, or 14.0 per cent of the annual plans. Proceeds from taxes and social security and health insurance contributions grew by 543.8 million leva (9.4 per cent) compared to those reported for the same period of 2021, forming 78.9 per cent of the overall CFP proceeds for the period.

Revenues from direct taxes amounted to 708.6 million leva, or 7.7 per cent of the annual estimates. Indirect tax revenues amounted to 3,418.4 million leva (16.2 per cent of the annual estimates), with VAT revenues amounting to 2,472.1 million leva (16.7 per cent of the planned), excise duty revenues to 867.3 million leva (14.7 per cent of the estimates), and customs duty revenues to 66.2 million leva (21.9 per cent compared to the annual estimates). Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Act, amounted to 200.1 million leva, which is a 14.5 per cent performance of the annual estimates. Revenues from social security and health insurance contributions were 1,991.9 million leva, or 14.9 per cent of those planned for the year.

Non-tax revenues amounted to 1,317.4 million leva, which accounts for 18.5 per cent of the annual estimates, and were mostly formed by revenues from state, municipal and legal fees, revenues from rents, concession revenues, greenhouse gas emission allowance revenues, and others.

The expenditures under the CFP, including Bulgaria's contribution to the EU budget, amounted to 7,296.1 million leva as of February 2022, which is 11.6 per cent of the annual estimates. For comparison, the expenditures under the CFP as of February 2021 amounted to 7,270.0 million leva.

The fiscal reserve as at February 28, 2022 was 9.9 billion leva, including 9.6 billion leva in fiscal reserve deposits in the central bank and banks, and 0.3 billion leva in receivables under the EU funds for certified expenditure, advance payments, and others.

Based on preliminary data and assessments, the budget balance of the CFP as of March 2022 is expected to be positive at 231 million leva (0.2 per cent of the estimated GDP). In comparison, the first quarter of 2021 had a negative budget balance to the amount of 625.8 million leva, the Finance Ministry said.