Bulgaria's Aug Monthly Budget Deficit Shrinks to BGN 11 M

Bulgaria's budget deficit for the period January-August 2011 was 1% of GDP. File photo

For the first eight months of 2011, the budget balance in the consolidated fiscal program (CFP) is negative at around EUR 732 M or 1.0% of GDP, according to preliminary data.

The information was released by the press office of the Bulgarian Finance Ministry.

On monthly basis, the budget deficit had shrunk to only BGN 11 M in August compared to July.

Cash-based deficit in 2011, under CFP, improved nominally by about BGN 805 M or 1.2% of the Gross Domestic Product, GDP, compared to the same period last year. The deficit for the period January-August 2010 was EUR 1 536.7 M or 2.2% of GDP.

Revenues and benefits under the CFP at the end of August amounted to about BGN 16 241 M or 62.0% of annual estimates.

Compared to the same period of 2010, revenues have increased by 6.1% (BGN 940 M), due in most part to higher tax revenues. Revenues from indirect taxes grew by 13.1% (with BGN 769 M more). There is also a noted increase of revenues from social and health insurance contributions and other direct taxes.

By August 31 2011, State spending from the consolidated budget, including Bulgaria's contribution to the EU general budget, amounted to BGN 16 973 M or 60.2% of estimates for the year. In nominal terms, expenditures remain similar to those recorded for the same period last year with a growth of 0.8% where an increase was reported mainly in health insurance costs and maintenance costs.

Wage costs shrunk by BGN 39 M compared to those reported in the first eight months of last year. Bulgaria's contribution to the EU general budget, paid at the end of August from the central budget amounted to BGN 466.3 M, in accordance with Regulation 1150/2000 of the Council of the EU. Fiscal reserves by August 31 2011, amounted to BGN 5 B. The final data for the implementation of CFP by August 31 2011 will be published at the end of September.

According to government data about the first half of 2011, published at the end of August, as of June 30, 2011, Bulgaria's state fiscal reserve amounted to BGN 5.2 B. Bulgaria's fiscal reserve has grown by some BGN 200 M since May, amounting to BGN 5.2 B as of end June.

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, and its lowest point since the pre-crisis years. 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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