site.btaFinance Ministry: 2023 Budget Deficit at 2.2% according to EU Methodology

Bulgaria's general government budget balance for 2023 is expected to have been a deficit of around 2.2% of projected GDP, based on preliminary data and estimates according to the European System of National and Regional Accounts (ESA 2010) methodology, the Finance Ministry said in a press release on Thursday. Preliminary estimates show that an improvement has been achieved compared to the target level of the indicator for 2023 as set in the reasoning to the 2023 State Budget of the Republic of Bulgaria Act (a deficit of 3% of projected GDP).

The Consolidated Fiscal Programme (CFP) deficit on a cash basis was 2.9% of projected GDP.

Based on the data from the monthly reports on the cash implementation of first-level spending units' budgets, CFP revenues, grants and donations for 2023 amounted to BGN 67,057.9 million, up in nominal terms by BGN 2,269.1 million from the level reported for 2022, with tax revenues mainly contributing to this performance.

CFP expenditures, including Bulgaria's contribution to the EU budget for 2023, amounted to BGN 72,677.3 million, accounting for 98.1% of the annual estimates. In nominal terms, expenditures increased by BGN 6,565.0 million (9.9%) compared to 2022.

The CFP balance at the end of December 2023 was a deficit of 2.9% of projected GDP and was formed by a deficit of 2.8% of projected GDP under the national budget and a deficit of 0.1% of projected GDP under EU funds.

The fiscal reserve as of December 31, 2023 amounted to BGN 13.4 billion, including BGN 10.9 billion of fiscal reserve deposits in the Bulgarian National Bank and in banks and BGN 2.5 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.

The Finance Ministry expects the CFP balance for January 2024 to have been a BGN 400 million surplus (0.2% of projected GDP), which is close to the level reported for January 2023.