site.btaPositive Budget Balance in Mid-2023

Bulgaria's budget balance on the Consolidated Fiscal Programme (CFP) was positive for the first half of 2023, amounting to BGN 174.4 million (0.1% of projected GDP), the Government Information Service reported after the Council of Ministers approved the relevant Finance Ministry report on Wednesday.

The budget balance resulted from a BGN 161.4 million excess of revenues over expenditures under the national budget and an excess of BGN 13.0 million under EU funds.

By mid-2023, the CFP revenues, grants and donations under the CFP topped BGN 31.4 billion, or 45.2% of annual estimates. Tax and non-tax revenues grew by nearly BGN 3.4 billion (12.6%) from the like period of 2022, and the proceeds from grants and donations (mainly grants under EU programmes and funds) were by BGN 214.2 million (15.1%) less, year on year.

Tax revenues (including revenues from social and health insurance contributions) approximated BGN 24.6 billion (46.2% of the tax revenues planned for the year).

Direct tax revenues amounted to slightly less than BGN 5 billion or 42.5% of the annual projection. Indirect tax revenues added up to BGN 10.454 billion (44.7% of the annual estimate), with VAT revenues exceeding BGN 7.4 billion (43.7% of those planned).

At BGN 5.6 billion, non-tax revenues accounted for 50.4% of annual estimates. Non-tax revenues were generated mainly by revenues from central and local government fees and court fees, revenues from property rents, concession revenues, revenues from the sale of greenhouse gas emission allowance, etc. In June, the European Investment Bank contributed BGN 384.5 million revenues for projects financed by the Modernization Fund in the field of production of electricity from renewable energy sources, modernization of energy networks and energy efficiency. Another non-tax revenue item in June were BGN 407.0 million paid by State-owned enterprises as dividend to the State. 

Revenues from grants and donations totalled BGN 1.2 billion.

The expenditures under the CFP, including Bulgaria's contribution to the EU budget, amounted to BGN 31.2 billion-plus as of June 2023, which was 42.2 % of the annual estimates. Compared to the first half of 2022, CFP expenditures topped BGN 31.2 billion, or 42.2% of annual estimates. Compared to the first half of 2022, CFP expenditures grew in nominal terms by 15.4% or nearly BGN 4.16 billion.

The most substantial increases of expenditures were on pensions (nearly BGN 2.1 billion up), on staff costs (over BGN 1 billion), capital expenditures (BGN 615.6 million), etc.

Non-interest expenditures amounted to over BGN 30 billion, which was 42.4% of the annual plan.

The part of Bulgaria's contribution to the EU budget, paid by June 30, amounted to BGN 847.6 million.

The fiscal reserve was BGN 12.9 billion, including BGN 12.5 billion fiscal reserve deposits at the Bulgarian National Bank and with commercial banks and BGN 0.4 billion receivables under the EU Funds for certified expenditure, advance payments, etc.