site.btaDeficit of BGN 0.6 Bln in Budget Balance under Consolidated Fiscal Programme Expected at End-June

Based on preliminary data and estimates, the budget balance under the Consolidated Fiscal Programme (CFP) is expected to have a deficit of BGN 0.6 billion (0.3% of projected GDP) by end-June 2024. By comparison, the CFP balance at mid-year 2023 was close to balance with a surplus of 0.1% of GDP, the Finance Ministry said on Monday.

Unlike in June 2023, when the State Budget received dividend revenues from state-owned enterprises (SOEs) amounting to some BGN 0.4 billion, dividend revenues in 2024 are insignificant in amount. In pursuance of the international contract (LOA) BU-B-UCP for the acquisition of Stryker combat vehicles ratified by the National Assembly, the Ministry of Defence incurred expenditures totalling some BGN 0.6 billion in June.

Key parameters of the CFP based on preliminary data and estimates:

CFP revenues, grants and donation as of June 2024 are expected to reach BGN 34.5 billion, which is 45.8% of the annual estimates. Compared to the same period of the previous year, revenues have risen by BGN 3.1 billion (9.8%), driven by tax revenues, which are up by BGN 2.6 billion (10.6%) in nominal terms, and proceeds from grants and donations (mainly grants under EU programmes and funds), which have increased by BGN 0.8 billion. Non-tax revenue decreased by BGN 0.3 billion (5.5%) mainly due to a decrease in proceeds from the sale of greenhouse gas emission allowances under the Electricity System Security Fund budget and dividend income from SOEs.

CFP expenditures, including the contribution of Bulgaria to the EU budget, as of June 2024 amount to BGN 35.1 billion, which accounts for 43.0% of the annual estimates. On a comparable basis with the previous year, an increase is reported, mainly in social expenditures, due to the higher pensions paid following the increase effective as of July 2023, and the higher staff costs following an increase in the salaries of teaching staff and some other administrations.

The share of Bulgaria’s contribution to the EU budget paid from the central budget by June 30, 2024, amounts to BGN 0.7 billion, which complies with EU's existing legislation.

The statistical data and the Information Bulletin on the implementation of the State Budget and the key CFP indicators, based on monthly data on cash execution of first-level spending units as of June 2024, will be published on the website of the Finance Ministry at the end of July 2024.