site.bta Preliminary Estimates: January Sees Budget Surplus of Lv 85 Mln

Preliminary Estimates: January Sees Budget Surplus of Lv 85 Mln

Sofia, February 2 (BTA) - The Finance Ministry said on Monday
that according to preliminary estimates the Consolidated Fiscal
Programme (CFP) balance on a cash basis is expected to be
positive in January 2015, amounting to around 85 million leva,
or 0.1 per cent of the estimated GDP. This will be the first
budget surplus for January since 2009. By comparison, January
2014 saw a deficit of 373.3 million leva, or 0.5 per cent of the
 planned GDP, which means that year-on-year the budget stance
improved by 0.6 per cent of GDP.

The improvement is mostly due to a growth in revenues,
specifically tax revenues. In January 2015, CFP revenues and
grants are expected to be around 2,475 million leva, or 8.2 per
cent of the annual plans, which accounts for a nominal growth of
 19.5 per cent, or 404 million leva compared to January 2014.
The planned growth in revenues in January 2015 outspaces
considerably the one reported in January 2013 and 2014.

Based on operational data and estimates, CFP expenditures
including Bulgaria's contribution to the EU budget as of January
 31 2015 amount to around 2,390 million leva, or 7.3 per cent of
 the annual plans. Expenditures in nominal terms remain close to
 those reported in the same month of the previous year.

Bulgaria's contribution to the EU budget by January 31 2015
amounts to 75.8 million leva, which complies with Council
Regulation 1150/2000 of 22 May 2000.

2014 Deficit at 3.7% of GDP

According to first level spending units' monthly reports, in
2014 the CFP balance was negative to the amount of 3,048.2
million leva, or 3.7 per cent of projected GDP. Consolidated
revenues and grants under CFP for 2014 stood at 29,406.8 million
 leva, or 98.1 per cent of plans under the amended 2014 Budget
Act.

In 2014, tax proceeds, including revenues from social security
contributions, totalled 23,028.2 million leva, or 98.8 per cent
of the amended 2014 plans. Revenues from social security and
health insurance contributions exceeded annual target and to a
great extent made up for the underperformance of VAT revenues
whereby tax revenues under the CFP were close to the amended
annual plans. Compared to the previous year tax revenues under
the CFP increased by 2.9 per cent or 657.9 million leva in
nominal terms.

Revenues from direct taxes amounted to 4,275.8 million leva, or
99.9 per cent of the amended annual plans, up by 374.3 million
leva from the previous year (9.6 per cent). Personal income tax
revenues grew 10.6 per cent (248 million leva). 2014 saw an
increase in corporate tax revenues up by 126.3 million leva or
8.1 per cent from the previous year.

Revenues from indirect taxes amounted to 11,480.8 million leva,
or 96.2 per cent of the amended annual target. VAT revenues
amounted to 7,264.4 million leva or 94.4 per cent. Year-on-year,
 VAT revenues dropped by 102.1 million leva, due mainly to the
higher amount of VAT refunded to the companies. At the end of
2014 the non-refunded VAT amounted to 105 million leva, the
lowest in the past 10 years and was considerably lower than the
240 million leva at the end of 2013.  Excise duty revenues added
 up to 4,038.7 million leva or 99.5 per cent of the annual plan.
 Excise duty revenues decrease by 17.1 million leva in nominal
terms (0.4 per cent) from 2013. Custom duties revenues were
153.1 million leva or 102.5 per cent of the annual plan.
Proceeds from other taxes amounted to 822.4 million leva, or
101.5 per cent of the amended plans for 2014. Revenues from
social security and health insurance contributions were 6,449.2
million leva, or 102.7 per cent of those planned for the year.
Compared with the previous year they increased by 6.4 per cent
or 389 million leva in nominal terms.

Non-tax revenues amounted to 3,457 million leva or 100.7 per
cent of the amended annual plans. This is by 493.5 million leva
less than the previous year which is due to the basic effect of
one-off revenues in 2013 from dividends for the state and a sum
awarded to the state under an arbitration case.

Grants, including grants from EU Funds, amounted to 2,921.6
million leva or 90.3 per cent of the annual plans.

In 2014, CFP expenditures, including Bulgaria's contribution to
the EU budget, amounted to 32,455 million leva, or 98.4 per cent
 of the amended annual plans. Compared with 2013, CFP
expenditures increased by 2,037.1 million leva (6.7 per cent),
mainly due to the accelerated absorption under European
programmes and funds, and to social and health insurance
payments growth. Expenditures under the EU funds accounts
(including national co-financing) grew by 23.6 per cent or 870.6
 million leva compared with 2013, and social and health
expenditures by 7.5 per cent or 942.8 million leva compared to
2013 figures.

In 2014, non-interest expenditures amounted to 30,920.4 million
leva or 103.2 per cent of the amended annual plans. Current
non-interest expenditures amounted to 26,025 million leva, or
104.5 per cent of the plans, capital expenditures (including net
 gain of state reserve) amounted to 4,895.4 million leva, or
96.5 per cent of the amended plans for 2014. Interest payments
amounted to 579.8 million leva, or 86.6 per cent of the plans
for 2014.

By December 31 2014, Bulgaria's contribution to the EU budget
amounted to 954.9 million leva.

In 2014, the CFP budget balance on a cash basis was negative,
amounting to 3,048.2 million leva. It was formed by a deficit
under the national budget of 2,388.5 million leva and a deficit
under EU funds of 659.6 million leva.

By December 31 2014, the fiscal reserve totalled 9.2 billion
leva, including 8.1 billion leva deposits in the BNB and banks
and 1.1 billion leva receivables under the EU Funds for
certified expenditure, advance payments, etc.