site.bta2014 Budget Deficit Projected at 3.7% of GDP

2014 Budget Deficit
Projected
at 3.7% of GDP


Sofia, December 31 (BTA) - Early forecasts by the Finance
Ministry suggest a deficit of some 3 billion leva under the
Consolidated Fiscal Programme (CFP), or 3.7 per cent of GDP
projections, in line with the budget update.

In December, the Finance Ministry submitted to the European
Commission applications for interim payments under the seven
operational programmes totalling nearly 900 million leva and
provided the necessary funds to the Bank Deposit Insurance Fund
within the set deadlines and procedures.

Also, the Ministry drafted the 2015 State Budget Act, which
envisages a gradual fiscal consolidation and reducing the budget
deficit in the mid term.

Based on the monthly data of first-level spending units, the CFP
balance as of end-November was negative, amounting to 1,600.7
million leva. It was formed by a deficit under the national
budget of 854.9 million leva and a deficit under EU funds of
745.8 million leva.

In November CFP revenues and grants stood at 26,738.4 million
leva, or 89.2 per cent of the annual plans for 2014 under the
State Budget Act. Compared to the like period of 2013, CFP
revenues as of end-November increased in nominal terms by 427.5
million leva, or 1.6 per cent, while taking into account the
baseline effect from one-off proceeds received in 2013 in the
part of non-tax revenues.

In November, CFP expenditures, including Bulgaria's contribution
to the EU budget amounted to 28,339.1 million leva, or 86 per
cent of the revised annual plans. Compared to November 2013, CFP
expenditures increased by 1,456.2 million leva, or (5.4 per
cent), mainly due to the accelerated absorption under European
programmes and funds, and to the growth of social security and
health insurance payments. Expenditures under the EU funds
accounts, including national co-financing, increased by 714.2
million leva, or 22.9 per cent, compared to the same period of
2013, while national budget expenditures grew by 742 million
leva or 3.1 per cent compared to those reported for the same
period of 2013. Increased social expenditures were mostly due to
a baseline effect from the pension increase from 1 April 2013,
as well as to higher health insurance payments in 2014.

In November, the fiscal reserve stood at 8.8 billion leva,
including 8.2 billion leva of deposits in the Bulgarian National
Bank and banks and 0.6 billion leva of receivables under the EU
funds for certified expenditures, advance payments, etc. PK/PP

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