Bulgaria Gets Minor Budget Surplus in Sept, Tax Receipts Up

(L-R) Finance Minister Djankov, Prime Minister Borisov, Labor Minister Mladenov. The Bulgarian government "boasts" reigning in the budget deficit over the past quarter. Photo by BGNES

Bulgaria registered a small budget surplus of BGN 19 M in September 2010, according to Finance Ministry data released Monday.

The more important fact, according to the Ministry, is that the government has managed to stabilize the budget deficit, not allowing it to grow beyond BGN 1.5 B.

Thus, Bulgaria accrued a budget deficit of a total of BGN 1.518 B at the end of the first nine months of 2010, with the deficit registering no growth in the third quarter of the year.

Bulgaria's deficit under the consolidate financial program, which is the state budget plus the budget of the National Social Security Institute, is BGN 1.508 B, and its deficit with respect to EU funds and contributions to the EU budget is BGN 9.7 M.

In the first 9 months of 2010, the Bulgarian state revenues amounted to BGN 17.356 B, which is 70.7% of the projected amount for 2010.

"Since June there have been the first positive signs of stabilization of tax receipts (most importantly with indirect taxes), with the tax revenues on consolidated level for July, August and September are higher than they were in the same months of 2009. These are the first months with a growth of tax income since the beginning of the year," the Finance Ministry said.

Bulgaria's total tax revenues, including social security contributions, amounted to BGN 13.575 B, which is 78.2% of the amount projected for 2010.

The raised direct taxes are BGN 2.609 B, or 75% of the planned 2010 direct tax revenues. The income from indirect taxes was BGN 6.8 B (69%), while the income from VAT was BGN 4.19 B, or (71.5% of the projected sum).

By the end of September, the revenues from excise taxes were BGN 2.518 B, or 64.6%. The income from customs duties was BGN 93 M, and is BGN 100.8% of the amount planned to be raised in 2010.

The the first nine months of the year, the Bulgarian state raised BGN 532.6 M from other taxes such as taxes on properties, a total of 74% of the planned amount; the income from social security and health payments was BGN 3.633, or 70.3%.

Bulgaria's non-tax revenues in the first three quarters were BGN 2.608, or 76.7% of the 2010 projection.

The foreign funds that Bulgaria received in January-September 2010 amounted to BGN 1.172 B (60.6% of the planned 2010 amount), coming mostly from advanced payments under the structural and cohesion funds of the EU and the EU agricultural fund for rural development.

In the first nine months of the year, the Bulgaria state budget, including its contribution to the EU budget, spent a total of BGN 18.874 B, 67.9% of the planned annual spending.

The state spending so far is BGN 204 M smaller than it was in the same period of 2009.

The Finance Ministry emphasizes that the 9% increase of social security and health spending and the payment of delayed state dues were compensated with reduced expenditures for the administration and capital investments.

"This is a result from the consolidation measures for restricting non-interest spending and transfers/subsidies of the state budget by up to 20%," says the Ministry.

The current non-interest spending amounted to BGN 15.9 B in the first nine months, or 74.6% of the projection for 2010. The capital spending, including the net increase of the state fiscal reserve, was BGN 1.999 B, or 52.7% of the projected capital spending. The interest payments amounted to BGN 444.7 M, or 87.7% of the planned amount for the year.

By September 2010, Bulgaria contributed BGN 528.8 M to the EU budget in accordance with regulation 1150/2000 of the EU Council.

On September 30, 2010, Bulgaria's fiscal reserve amounted to BGN 6.7 B.

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