site.btaFinance Ministry Reports March Budget Surplus

Finance Ministry Reports March Budget Surplus

Sofia, May 4 (BTA) - The Finance Ministry on April 30 released
data about the implementation of the Consolidated Fiscal
Programme by March 31.

The first level spending units' monthly reports show that a
surplus of 257.1 million leva is reported as at the end of March
 2015 (0.3 per cent of forecast GDP). It is formed by a surplus
under the national budget of 156.2 million leva and a surplus
under EU funds of 100.9 million leva. Compared to end-March 2014
 the budget position has improved by 1.4 per cent of GDP. The
higher revenues continue to be the main factor for the
improvement of the budget balance, while expenditures develop as
 provided for in the fiscal framework. The rate of revenue
growth significantly outpaces the rate of expenditure growth
which results in the reported budget balance improvement.

Consolidated revenues and grants under CFP as of 31.03.2015
stand at 7,796.5 million leva, or 25.7 per cent of the plans
under the 2015 Annual Budget Law. Compared to the same period of
 the previous year revenues and grants have risen by 1,220.7
million leva (18.6 per cent).

Based on preliminary data and estimates the balance of the
Consolidated Fiscal Programme (CFP) on a cash basis as of April
2015 is expected to have a surplus, amounting to around 1,006
million leva (1.2 per cent of the forecasted GDP). This is the
highest surplus for the first four-month period of the year
since 2008. For comparison, the balance as of April 2014 was a
deficit of 864.5 million leva (1.1 per cent of GDP), which means
 that compared to the first four months of the previous year the
 budget stance improves by 1,870.5 million leva or 2.3 per cent
of GDP.

The higher revenues continue to be the main factor for the
forecasted improvement of the budget balance. In addition to
growth in tax revenues, special attention should also be paid to
 the amounts refunded by the European Commission in terms of
grants. In April only, the Commission refunded to Bulgaria the
amount of 666.9 million leva under EU Operational Programmes and
 Funds, which includes mainly expenditures incurred at the end
of 2014 and reimbursed by the Commission. This is also reflected
 in surplus of revenues over expenditures under the EU funds'
accounts as of April. We should, however, take into account the
fact that the positive effect on the budget balance of these
receipts referring to the previous year would largely offset the
 expected deterioration related to the expenditures under EU
funds' accounts at the end of 2015, which will be effectively
reimbursed in 2016 and the resources will not flow to this
year's budget.