Bulgaria's Oct Monthly Budget Deficit Shrinks to BGN 15 M

Finance | November 29, 2011, Tuesday // 09:13|  views

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

For the first ten months of 2011, the budget balance in the consolidated fiscal program (CFP) is negative at around BGN 842 M or 1.0% of GDP, according to preliminary data.

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

Compared to 2010, the deficit is going down.

On monthly basis, the budget deficit had shrunk to only BGN 15 M in October, compared to September.

Cash-based deficit in 2011, under CFP, improved nominally by about BGN 1.06 M or 1.6% of the Gross Domestic Product, GDP, compared to the same period last year when the deficit was BGN 1.9 M or 2.7% of GDP. 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 October amounted to about BGN 20.5 M or 78.3% of annual estimates.

Compared to the same period of 2010, revenues have increased by 6.7% (BGN 1 285.2 M), due in most part to higher tax revenues. Revenues from indirect taxes grew by 12.5% (with BGN 966 M more on yearly basis). There is also a noted increase of revenues from social and health insurance contributions and other direct taxes – 9.3%.

By October 31, 2011, State spending from the consolidated budget, including Bulgaria's contribution to the EU general budget, amounted to BGN 21 360.8 M or 75.8% of estimates for the year. In nominal terms, expenditures remain similar to those recorded for the same period last year with a growth of 1.1% where an increase was reported mainly in health insurance costs and maintenance costs.

Bulgaria's contribution to the EU general budget, paid at the end of October from the central budget amounted to BGN 587.8 M, in accordance with Regulation 1150/2000 of the Council of the EU.

The fiscal reserve by October 31, 2011, amounted to BGN 5.3 B.

The final data for the implementation of CFP by October 31 2011 will be published in December.

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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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, economic growth, GDP, GDP growth


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