site.btaFinance Ministry Expects Lv 1,856 Mln Q1 Surplus under Consolidated Fiscal Programme

Finance Ministry Expects Lv 1,856 Mln Q1 Surplus under ConsolidatedFiscal Programme

Sofia, April 1 (BTA) - Based on preliminary data and estimates, the Consolidated Fiscal Programme (CFP) is expected to be in a surplus of 1,856 million leva (2.1 per cent of the GDP projection) in the first quarter of 2016, the Finance Ministry said.

By comparison, a CFP surplus of 255.9 million leva (0.3 per cent of GDP) was reported in the first quarter of 2015, meaning that as a percentage of GDP, the budget stance improved by 1.8 percentage points.

The improved budget stance is still due to growing revenues and shrinking expenditures as compared to a year earlier. In March budget revenues are usually high due to the specificity of the tax calendar. In the last four days of March alone, the proceeds administered by the revenue administrations amount to over 500 million leva. In addition to higher tax revenues and revenues from social security contributions, about 783 million leva were received in grants from the European Commission in March 2016. Part of them cover expenditures incurred at the end of 2015, and the remainder refer to advance payments under EU programmes for the 2014-2020 programming period.

In the first quarter of 2016, CFP revenues and grants are expected to be 9,080.2 million leva (27.5 per cent of the annual estimate), up by 1,285.1 million leva on March 2015. The increase from the previous year is mainly due to higher tax and non-tax revenues and grant proceeds (funds reimbursed by the European Commission), which rose by 764.9 million leva and 520.2 million leva, respectively.

CFP expenditures, including Bulgaria's contribution to the EU budget, amount to 7,224.2 million leva as of March 31, 20.7 per cent of the annual estimates. The year-earlier expenditures totalled 7,539.2 million leva.

The portion of Bulgaria's contribution to the EU budget paid from the central government budget as of March 31 amounts to 253.9 million leva.

Based on the monthly data of first-level spending units, the CFP balance on a cash basis as of end-February 2016 is in a surplus of 915.2 million leva, 1.0 per cent of the projected GDP. It is formed by a national budget surplus of 508.6 million leva and a surplus of EU funds of 406.6 million leva. By comparison, a CFP deficit of 105.5 million leva (0.1 per cent of GDP) was reported in the first two months of 2015, meaning that as a percentage of GDP, the budget stance improved by 1.1 percentage points.

CFP revenues and grants in February 2016 stand at 5,519.4 million leva, 16.7 per cent of the annual estimates.

Tax revenues, including revenues from social security contributions, total 4,233.8 million leva, 16.3 per cent of the revenues planned for the year.

The portion of Bulgaria's contribution to the EU budget paid as of February 2016 from the central government budget amounts to 179.7 million leva.