site.btaCabinet Approves Report on 2022 State Budget Implementation

The Council of Ministers Wednesday approved the annual report on the implementation of the 2022 State budget and the report to it and proposed to Parliament to debate and adopt it, the government information service reported.

The report says that 2022 ended with a Consolidated Fiscal Programme (CFP) cash-basis deficit of BGN 1.3236 billion, 0.8% of GDP. The updated estimates to the 2022 Bulgarian State Budget Act envisage an year deficit of BGN 6.2284 billion, which means that there was a nominal improvement in the budget balance of more than BGN 4.9 billion.

The General Government Sector was in a deficit of 2.8% of GDP.

Due to the crisis triggered by COVID-19, the General escape clause of the Stability and growth pact was activated in 2020, which allowed Member States to deviate from the step to achieve the medium-term budgetary objective in 2020 and 2021. Subsequently, a decision of the European Commission extended the application of the General escape clause in the EU to 2022 and 2023.

As of December 31, 2021, the fiscal reserve was BGN 13.4 billion, including BGN 12.1 billion in fiscal reserve accounts and deposits with the Bulgarian National Bank and banks, and BGN 1.3 billion in receivables under the EU Funds for certified expenditures, advance payments, etc.

The CFP revenues, grants and donations totalled BGN 64.7887 billion. The revenues were 39.2% of GDP, as against 37.7% of GDP in 2021. On a comparable basis with the estimates to the 2022 Bulgarian State Budget Act (which excludes some one-off extraordinary revenues), revenues, aids and donations under the 2022 CFP amount to BGN 61.6077 billion, which represents an excess of the 2022 Bulgarian State Budget Act estimates by 3.3%.

The CFP expenditures, including Bulgaria's contribution to the EU budget, totalled BGN 66.1123 billion. On a comparable basis with the estimates to the 2022 Bulgarian State Budget Act, the CFP expenditure amounts to BGN 62.9313 billion, which represents 95.5% of the 2022 Bulgarian State Budget Act estimate. The CFP expenditure represents 40% of GDP for 2022 against 40.5% of GDP for 2021.

Interest payments amounted to BGN 651.8 million (98.1% of the annual projection), non-interest current expenditures amounted to BGN 54.8205 billion, capital expenditures (including the net increment of the State reserve) totalled BGN 5.7066 billion, and current and capital transfers to other countries amounted to BGN 47.3 million.

Bulgaria's contribution to the EU budget amounted to BGN 1.705 billion (1% of GDP), which complies with the current legislation in the area of EU own resources.

By the same decision, the Cabinet approved the Annual Report and Statement on the Activities of the State Fund for Guaranteeing the Stability of the State Pension System (Silver Fund) for 2022 and the Annual Report on the State Debt Situation for 2022, which are to be submitted to the National Assembly. The total cash resources as of December 31, 2022, in the Silver Fund account at the Bulgarian National Bank amount to BGN 3.6959 billion. The amount of state debt as of December 31, 2022, is BGN 36.1257 billion.