site.btaBudget Shows Lv 1,700 Mln Surplus by June 2018

Sofia, July 31 (BTA) - On Wednesday the Bulgarian Finance Ministry released data on the performance of the Consolidated Fiscal Programme (CFP) as of June 30, 2018 and preliminary data and estimates for July.

Based on the monthly reports of budget authorizers by delegation, the CFP balance on a cash basis as of June 2018 was positive, amounting to 1,713.9 million leva (1.6 per cent of forecast GDP) and was formed by a national budget surplus of 2,014.4 million leva and a EU funds deficit of 300.5 million leva.

The CFP revenues and grants as of June 2018 stood at 19,210.1 million leva, or 50.3 per cent of the annual estimates. Compared to the same period of 2017, tax and non-tax revenues grew by 1,699.5 million leva, (10.1 per cent), while grant revenues were approximately unchanged (increasing by 27.4 million leva or 4.1 per cent).

Tax revenues, including revenues from social and health insurance contributions, totaled 16,021.0 million leva, which was 51.4 per cent of the annual plans. Compared to June 2017, tax revenues rose by 10.2 per cent (1,482.7 million leva) in nominal terms.

Direct tax revenues amounted to 3,113.9 million leva, or 54.1 per cent of the annual estimates, growing from the same period of 2017 by 342.9 million leva (12.4 per cent).

Indirect tax revenues amounted to 7,646.2 million leva, or 50.4 per cent of the annual plans. Compared to June 2017, revenues in this group grew by 536.0 million leva (7.5 per cent). VAT revenues amounted to 5,101.5 million leva, or 52.2 per cent of the plan. Non-refunded VAT as of June 30, 2018 amounted to 61.1 million leva. Excise duty revenues amount to 2,408.4 million leva, (46.8 per cent of the annual estimates). Customs duties revenues were 118.2 million leva or 62.2 per cent of the annual plan.

Revenues from other taxes (including property taxes and other taxes under the Corporate Income Tax Act) amounted to 676.3 million leva, or 61.6 per cent of the annual estimates.

Revenues from social and health insurance contributions were 4,584.6 million leva, or 50.2 per cent of those planned for the year. Compared to the same period of 2017, these revenues rose by 13.8 per cent (555.6 million leva) in nominal terms.

Non-tax revenues amounted to 2,491.2 million leva, or 53.0 per cent of the annual estimates. Revenues from grants amounted to 697.9 million leva.

The expenditures under the CFP (including the contribution of Bulgaria to the EU budget) amounted to 17,496.1 million leva as of June 2018, which was 44.5 per cent of the annual estimates. By comparison, the expenditures for the same period of 2017 amounted to 15,737.3 million leva. The nominal growth was due both to higher expenditures under the national budget and to increased expenditures under the EU funds accounts. The growth of expenditures under the national budget was mostly due to the higher health insurance and social payments (a baseline effect on expenditures on pensions from their increase as from July 2017 and the two-step increase of the minimum pension in 2017 as from July and October), the higher staff costs, mostly resulting from the increase in the remuneration of teaching staff in secondary education, etc., while mainly capital expenditures increased under the EU funds accounts.

The part of Bulgaria's contribution to the EU budget, paid from the central budget as of June 30, 2018, amounted to 576.3 million leva.

The fiscal reserve as of June 30, 2018 was 10,830 million leva, including 9,870 million leva fiscal reserve deposits with the Bulgarian National Bank and commercial banks and 960 million leva receivables under the EU Funds for certified expenditure, advance payments, etc.

Based on preliminary data and estimates, the CFP balance as of July 2018 is expected to be positive, amounting to 2,023.8 million leva (1.9 per cent of the projected GDP). In structural terms, the national budget balance improves from July 2017.

The CFP revenues and grants as of July 2018 are expected at 22,550.5 million leva, or 59.0 per cent of the annual estimates, up by 2,072.9 million leva from July 2017. The year-on-year growth is due mainly to a 2,085.1 million leva (10.6 per cent) increase of tax and non-tax revenues, while grant revenues are largely unchanged from the same period of 2017.

The expenditures under the CFP (including the contribution of Bulgaria to the EU budget) amount to 20,526.6 million leva as of July 2018, which is 52.2 per cent of the annual estimates. By comparison, the CFP expenditures for the same period of 2017 amounted to 18,505.9 million leva.

The part of Bulgaria's contribution to the EU budget, paid from the central budget as of July 31, 2018, amounts to 654,4 million leva.