Bulgaria's Budget Sinks Deeper in May, Fiscal Reserve Finally Up

Finance | July 1, 2011, Friday // 17:25|  views

Pictured: Bulgaria's Finance Minister Simeon Djankov leaves the plenary hall in Parliament with the head of the Parliamentary Committee on Budget Menda Stoyanova. Photo by BGNES

Bulgaria's state budget registered a monthly deficit of BGN 45 M in May 2011, according to latest data of the Finance Ministry.

The new monthly deficit comes after in April the Bulgarian budget enjoyed a surplus of BGN 190 M, which, however, was due to the annual contribution of the Bulgarian National Bank to it.

Thus, in the first four months of 2011, Bulgaria's Consolidated Fiscal Program (including the the national budget and the balance of foreign aid such as EU funds) registered a deficit of BGN 597.5 M (0.8% of the projected 2011 GDP) on cash basis, including a deficit of BGN 450.6 M of the national budget, and a deficit in EU transactions of BGN 146.9 M.

In spite of the negative result, however, it is still a massive year-on-year improvement, as in January-May 2010 Bulgaria had a deficit of BGN 1.36 B (1.9% of the 2010 GDP), an improvement of BGN 762.5 M (1.1 percentage points) on cash basis.

Bulgaria's state revenues and foreign aid (i.e. EU funding) under the Consolidated Fiscal Program at the end of May 2011 amounted to BGN 9.998 B, or 38.1% of the planned state income for 2011.

Compared with the first five monts of 2010, Bulgaria's state revenues are up by 6.8%, or BGN 640 M.

According to the Finance Ministry data, this is primarily due to the rising income from indirect taxes, which has grown by BGN 580.5 M, or 18.1%, as well as to the rising income from social security and health insurance payments. The state revenues from direct and other taxes have also increased slightly year-on-year.

Bulgaria's total tax revenues in the first five months of 2011 amounted to BGN 8.16 B, or 81.6% of all revenues.

Income from direct taxes reached BGN 1.767 B, or 46.6% of the annual projection. Income from indirect taxes amounted to BGN 3.787 B, or 36.4% of the expected 2011 amount.

State revenues from VAT reached BGN 2.346 B, or 36.2% of the 2011 projection, while revenues from excise taxes were BGN 1.389 B, or 36.6% of the expected 2011 sum.

Income from customs duties has reached BGN 44.9 M, or 44.9% of the 2011 projection, while income from property and other taxes reached BGN 369.8 M, or 48.2% of the annual projection.

State income from social security and health insurance payments as of May 31 was BGN 2.235 B, or 38.9% of the projection.

Bulgaria's non-tax income in January-May 2011 was BGN 1.839, or 33.4% of the projection for 2011.

Bulgaria's budget spending in the first five-months of the year, including its contribution to the common EU budget, amounted to BGN 10.595 M, or 37.6% of the 2011 projection.

Compared with the same period of 2011, Bulgaria's state spending declined by BGN 122.9 M, or 1.1%. The spending on salaries and social security, current maintenance costs, and capital spending have declined, while health insurance payments have increased.

Bulgaria's current non-interest spending amounted to BGN 9.16 (40.8% of the annual projection), capital spending (including the increase of the state reserve) amounted to BGN 792 M (21.4% of the annual projection), while the interest payments amounted to BGN 312.7 M (47.3% of the 2011 projection).

Bulgaria's contribution to the common EU budget amounted to BGN 330 M in the first five months of 2011, in accordance with Regulation 1150/2000 of the EU Council.

Bulgaria's fiscal reserve amounted to BGN 5 B as of May 2011, according to the Finance Ministry, marking its first increase in months, a rise of BGN 300 M compared with April 2011.

Several days ago, Bulgaria's Prime Minister Boyko Borisov said that the fiscal reserve will grow thanks to the transfors from the EU under EU operational programs.

As of April 30, 2011, Bulgaria's fiscal reserve stood at BGN 4.7 B, a decline of BGN 400 M in just two months.

Bulgaria's fiscal reserve amounted to BGN 5.1 B as of February 28, 2011, a decline of BGN 300 M.

Bulgaria's fiscal reserve stood at BGN 5.4 B at the end of January compared with BGN 6 B at the end of December 2010.

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Tags: state budget, budget deficit, fiscal reserve, Finance Ministry, state spending, tax revenues, taxes, VAT, 2010 Budget Revision Act, 2010 budget, deficit, BNB, Bulgarian National Bank


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