site.btaUPDATED Finance Minister: Indirect Tax Revenues Go Up in April, May, June 2024

Addressing a parliamentary hearing here on Thursday, caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova reported a significant increase in indirect tax revenues recorded in April, May and June 2024 as a result of legislative measures and the actions taken to strengthen customs and fiscal control.

Petkova said that preliminary forecasts are for nominal growth in indirect taxes of over 20% for the second quarter of 2024 compared to the second quarter of 2023. This growth is expected to offset the slowdown seen in some taxes for the first quarter of 2024.

The VAT revenue side of the budget execution from domestic transactions and imports amounts to BGN 8,687 million to date. Forecasts are that by the end of 2024, VAT revenues will amount to BGN 17,986 million, which is a fulfilment of the budgeted amount for 2024 of 96.6%

The revenue side of the budget execution from excise duty amounts to BGN 3,199 million. According to forecasts, excise duty revenues will amount to BGN 6,650 million by the end of the year, which fulfils the target set in the State Budget Act by 103.2%.

The Finance Minister spoke about the National Recovery and Resilience Plan, saying that the second request for payment to the European Commission (EC), which was made on October 7, 2023, is in the assessment stage, adding that there is a risk of a reduction in the amount of funds provided, due to key reforms in justice and energy, which the EC may not accept as satisfactory.

Petkova reported that that the expenditure under the consolidated fiscal programme, including Bulgaria's contribution to the EU, as of May 2024 amounts to BGN 28,109 million.

The budget balance of the consolidated fiscal programme at the end of May 2024 is positive, amounting to BGN 146.9 million. The fiscal reserve as of May 31, 2024, is BGN 11.6 billion. The nominal amount of public debt as of May 31, 2024, is BGN 41.1 billion.

Regarding the implementation of the European programmes, Petkova said that as of March 31, 2024, the disbursed funds for the 2021-2027 programming period amounted to EUR 587 million, and the received revenues were EUR 834 million.

After Petkova's hearing, Continue the Change - Democratic Bulgaria co-chair and former minister of finance Assen Vassilev said that considering Petkova's report, having Bulgaria join the euro area after July 1, 2025, is a realistic scenario. He added: "It transpired that revenue is on track. Revenue is up 14.4%, with 2.7% inflation."

He warned that there is one risk and that is the second payment under the Recovery and Resilience Plan, where Parliament has to pass four pieces of legislation to unblock the second payment.