site.btaConsolidated Fiscal Programme Shows BGN 398.0 Mln Deficit as at November 2022

Based on data from the monthly reports on the cash performance of the budgets of first-level spending units, Bulgaria's Consolidated Fiscal Programme (CFP) balance was in a BGN 398.0 million deficit on a cash basis as of November 2022, 0.2% of the projected GDP, the Finance Ministry said. The deficit resulted from a BGN 857.5 million excess of national budget expenditures over revenues and a BGN 459.5 million surplus on EU funds.

CFP revenues, grants and donations amounted to BGN 56,465.5 million by November 2022, 94.6% of the updated annual estimates to the 2022 State Budget Act. If the impact of one-off revenues of the Electricity System Security Fund from targeted contributions by enterprises in the energy sector with 100% state participation in their capital is eliminated, as of November the performance of CFP revenues and grants was 89.7% of the estimates to the 2022 State Budget Act. The increase from a year earlier was BGN 5,710.3 million (12.0 %).

The targeted contributions went towards covering expenditures for compensation of end non-household consumers of electricity.

Tax revenues under the CFP, including revenues from social security contributions, totalled BGN 42,742.6 million, which accounted for 92.7% of the tax revenues planned for the year. Direct tax revenues amounted to BGN 9,265.3 million, 102.4% of the annual target. Indirect tax revenues amounted to BGN 19,664.3 million (88.3% of the annual estimates), with VAT revenues at BGN 13,977.9 million (97.3% of those planned), excise duty revenues at BGN 5,220.1 million (89.7% of the estimates), and customs duty revenues at BGN 414.3 million (109.0% as against the annual estimates).

Revenues from other taxes, including property taxes and other taxes, amounted to BGN 1,409.9 million, 100.6% of the annual estimates. Revenues from social insurance and health insurance contributions reached BGN 12,403.1 million, 92.6% of the target for the full year.

Analysis of the data for November should take into account the fact that significant corporate tax revenues were received during the month which is related to the deadline for making the corporate tax prepayments in 2022. The proceeds from this tax for the month were almost BGN 1.7 billion, which had a positive impact on the revenues for the month. As a result of the implemented tax measures for lower or zero VAT on certain goods and services, as well as of the regular refunding of VAT, an underperformance of the planned VAT revenues for 2022 is expected, the Finance Ministry said.

Non-tax revenues added up to BGN 11,067.7 million.

Revenues from grants and donations amounted to BGN 2,655.3 million.

CFP expenditures (including Bulgaria's contribution to the EU budget) reached BGN 56,863.6 million, 86.3% of the annual target.

A major driver of the increase in expenditures were the programmes for payment of compensations to non-household electricity consumers due to the surge in electricity prices. Social and health insurance expenditures also grew substantially, above all the expenditures on pensions.

As of November 2022, non-interest expenditures amounted to BGN 54,573.7 million, 86.5% of the annual plan. Non-interest current expenditures amounted to BGN 50,508.7 million. Capital expenditures (including net increment of the state reserve) totalled BGN 4,032.1 million. The current and capital transfers to other countries amounted to BGN 32.9 million. Interest payments totalled BGN 612.1 million, 92.1% of those planned for 2022.

At BGN 1,677.7 million, the portion of Bulgaria's contribution to the EU budget paid by the central government budget by November 30,2022 complied with the current legislation on the EU's own resources.

The fiscal reserve stood at BGN 12.8 billion by November 30.