site.btaConsolidated Fiscal Programme Shows Lv 2,420.9 Mln Surplus as of September 2017

Sofia, November 1 (BTA) - The cash-basis balance of Bulgaria's consolidated fiscal programme (CFP) as of September 2017 was positive, amounting to 2,420.9 million leva (2.4 per cent of forecast GDP) and was formed by a national budget surplus of 2,482.1 million leva and a EU funds deficit of 61.2 million leva, the Finance Ministry reported on Tuesday.

The CFP covers the central-government budget and the budgets of public-financed entities, including their EU funds accounts and external funds accounts.

The CFP revenues and grants as of September 2017 stood at 26,151.5 million leva, or 73.8 per cent of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues grew by 1,774.9 million leva (7.6 per cent), while grants revenues were lower.

Tax revenues, including social and health insurance contributions, totaled 21,856.5 million leva, which was 78.0 per cent of the annual target. Compared to September 2016, tax revenues increased by 8.7 per cent (1,750.1 million leva) in nominal terms.

Direct tax revenues amounted to 3,885.0 million leva, or 76.3 per cent of the annual estimates, growing from the same period of 2016 by 310.4 million leva (8.7 per cent).

Indirect tax revenues amounted to 11,028.2 million leva, or 78.7 per cent of the annual target. Compared to September 2016, revenues in this group grew by 643.4 million leva (6.2 per cent). VAT revenues stood at 7,137.5 million leva, or 81.3 per cent of the plan annual plan. Compared to the previous year, VAT revenues rose by 523.2 million leva (7.9 per cent). As of September 30, 2017, non-refunded VAT amounted to 60.1 million leva. Excise duty revenues amounted to 3,724.9 million leva (73.9 per cent of the annual estimates). Customs duties revenues were 141.0 million leva or 84.9 per cent of the annual target.

Other tax revenues (including property taxes and other taxes under the Corporate Income Tax Act) amounted to 815.6 million leva, or 82.3 per cent of the annual estimates.

Revenues from social and health insurance contributions totaled 6,127.6 million leva, or 77.2 per cent of those planned for the year. Compared to the same period of 2016, these revenues increased by 14.2 per cent (760.9 million leva) in nominal terms.

Non-tax revenues amounted to 3,245.2 million leva or 68.2 per cent of the annual targets.

Revenues from grants amounted to 1,049.8 million leva, or 39.7 per cent of the annual plan.

The expenditures under the CFP (including Bulgaria's contribution of the EU budget) amounted to 23,730.5 million leva as of September 2017, which was 64.5 per cent of the annual estimates.

Non-interest expenditures amounted to 22,327.3 million leva, which was 64.6 per cent of the annual target. Non-interest current expenditures as of September 2017 stood at 20,951.7 million leva, or 73.9 per cent of the annual estimates. Capital expenditures (including net increment of the State reserve) amounted to 1,375.6 million leva, or 22.2 per cent of the estimates for 2017. Interest payments amounted to 726.6 million leva, or 87.9 per cent of those planned for 2017.

The part of Bulgaria's contribution to the EU budget paid from the central-government budget as of September 30, 2017 amounted to 676.6 million leva.

The fiscal reserve as of September 30, 2017 was 11,900 million leva, including 11,400 million leva fiscal reserve deposits with the Bulgarian National Bank and commercial banks and 500 million leva receivables from the EU funds for certified expenditure, advance payments, etc.

The cash-basis balance of the CFP as of the end of October 2017 is expected to be positive and to amount of 2,386.2 million leva, or 2.4 per cent of forecast GDP. For October, the CFP is expected to show a 34.7 million deficit.

Traditionally, part of the expenditures planned for the year are committed during the last quarter, mainly due to larger spending on infrastructure and investment projects in view of their implementation stages and the completion of the construction season. Besides this, social expenditures, maintenance expenditures, etc. are higher in autumn and winter. These factors prompt a forecast of an excess of expenditures over revenues for the last quarter and a contraction of the currently reported budget surplus, the Finance Ministry explained.