site.btaFinance Ministry: Consolidated Fiscal Programme in BGN 882.5 Mln Surplus by End-April

Bulgaria's Consolidated Fiscal Programme (CFP) was in a BGN 882.5 million surplus (0.6% of projected GDP) as of April 30, 2022, resulting from a BGN 678.9 million excess of national budget revenues over expenditures and a BGN 203.7 million excess of EU funds received over EU funds spent, the Finance Ministry said in a press release on Tuesday.

CFP revenues, grants and donations added up to BGN 17,789.1 million by April 2022, or 31.1% of the annual estimates. This total grew by BGN 1,076.9 million, or by 6.4%, from the amount reported in April 2021. Tax and non-tax CFP revenues grew by BGN 1,036.0 million in nominal terms, while grant and donation revenues (mostly grants under EU programmes and funds) were by BGN 40.9 million more than those reported for the like period of 2021.

CFP tax revenues, including social security contributions, totaled BGN 14,022.0 million, accounting for 31.1% of these revenues planned for the full year. The tax and social security contributions collected grew by BGN 1,326.5 million (10.4%) compared to those reported for the like period of 2021, generating 78.8% of the total CFP revenues for the period.

At BGN 2,279.1 million, direct tax revenues represented 24.8% of those planned for the year. Indirect tax revenues reached BGN 6,944.8 million (33.0% of the annual estimates), with VAT revenues of BGN 5,048.8 million (34.2% of those planned), excise duty revenues of BGN 1,732.0 million (29.3% of the estimates), and customs duty revenues of BGN 143.4 million (47.3% of the annual target). Revenues from other taxes, including immovable property and other taxes under the Corporate Income Tax Act, amounted to BGN 649.4 million, or 47.1% of the annual estimates. Revenues from social and health insurance contributions aggregated BGN 4,148.7 million, accounting for 31.0% of the estimates for the full year.

Non-tax revenues amounted to BGN 2,879.1 million and consisted mainly of central and local government revenues, revenues from legal costs and expenses, rents, concessions, greenhouse gas emission allowance revenues, etc.

Grant and donation revenues added up to BGN 887.9 million.

CFP expenditures, including Bulgaria's contribution to the EU budget for April 2022, amounted to BGN 16,906.5 million, representing 26.8% of the annual estimates. By comparison, CFP expenditures by April 2021 amounted to BGN 16,540.5 million.

At BGN 16,030.6 million, non-interest expenditures accounted for 26.5% of the annual estimates. Non-interest current expenditures added up to BGN 15,052.5 million. Capital expenditures (including net increment of state reserve) amounted to BGN 969.8 million. Current and capital transfers to other countries were BGN 8.3 million, and BGN 340.9 million were spent on interest payments, representing 51.3% of those planned for 2022.

The portion of Bulgaria's contribution to the EU budget which was paid from the central government budget by April 30, 2022 amounted to BGN 534.9 million as required by the legislation in force on EU own resources.

The fiscal reserve was BGN 9.4 billion by April 30, 2022, including BGN 8.3 billion on fiscal reserve deposits with the Bulgarian National Bank and with commercial banks and BGN 1.1 billion of receivables from EU funds for certified expenditures, advance payments, etc.

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Based on preliminary data and estimates, the Finance Ministry expects a BGN 570 million surplus under the CFP (0.4% of projected GDP) by the end of May 2022, compared to a BGN 140.6 million deficit a year earlier.