Bulgaria Turns to Budget Surplus of 1.1% of GDP at End-June

Bulgaria’s central government budget showed a surplus of BGN 890M equivalent to 1.1% of the projected 2015 GDP, the Finance Ministry announced on Friday.

This compared with a budget deficit of BGN 996.4M, or 1.2% of GDP at the end of June 2014.

The turnaround to surplus was due to a 15-percent year-on-year increase in budget revenue and grants, which totalled BGN 16.3B, or 53.7% of the 2015 plan at the end of June, the Finance Ministry said in a statement.

Tax revenue increased by 9.9%, reaching BGN 12.3B or 51.2% of the 2015 plan.

Non-tax revenue was 10.7% higher, while grants, which comprised mostly EU funds, rose by 71.2%.

Budget spending, including Bulgaria’s contribution to the EU budget, totalled BGN 15.4B or 46,9% of the annual plan. This was 1.6% higher compared with the end of June 2014.

The government’s fiscal reserve totalled BGN 11B on 30 June 2015, including BGN 10.8B deposited with the Bulgarian National Bank and other banks.

Citing preliminary data and estimates, the Finance Ministry said it expects to report next month a central government budget surplus of BGN 801M for end-July equivalent to 1% of the projected 2015 GDP. The preliminary figure is an improvement on end-July 2014 when the central government budget was BGN 1.15B in the red, equivalent to 1.4% of GDP.

Bulgaria’s minority coalition government has projected 3% deficit in the 2015 budget bill adopted by Parliament in December. Budget revenue is forecast at 36.8% of GDP and expenditure is set at 39.8% of GDP.

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