site.btaConsolidated Fiscal Programme Shows BGN 1.6 Bln Deficit on Cash Basis in August

The balance under the Consolidated Fiscal Programme (CFP) on a cash basis is expected to show a deficit of BGN 1.6 billion, which is 0.8% of the projected Gross Domestic Product (GDP) by end-August 2024, the Finance Ministry said on Monday.

On September 30, the Finance Ministry also said that the CFP balance on a cash basis as of July 2024 was negative, amounting to BGN 972.1 million (0.5% of the projected GDP).

Revenues, grants, and donations under the CFP as of August 2024 are estimated at BGN 46.5 billion, or 61.8% of the annual estimates. The moderate growth trend in tax and social security revenue observed in previous months continued in August. By the end of August 2024, it is expected that 64.3% of the annual revenue estimates will be met, compared to 62.2% for the same period in 2023.

Compared to the same period last year, CFP proceeds have increased by BGN 4.1 billion (9.6%). This growth is mainly due to a nominal increase of BGN 4.2 billion (12.6%) in tax and social security revenues and a rise of BGN 0.9 billion in proceeds from grants and donations, primarily from EU programs and funds. However, non-tax revenues have decreased by BGN 1.0 billion (13.2%) year-on-year, mainly due to lower income from dividends and the sale of greenhouse gas emission quotas.

In the first eight months of 2023, the state's revenue from dividends from state-owned companies amounted to BGN 1.55 billion, whereas for the same period this year, the revenue is only BGN 0.1 billion, against a planned BGN 0.34 billion. This shortfall is primarily due to the non-distribution of dividends from the profit of the Bulgarian Energy Holding EAD for FY2023.

CFP expenditures, including Bulgaria’s contribution to the EU budget, amounted to BGN 48.1 billion as of August 2024, representing 59.1% of the annual estimates.

As of August 31, Bulgaria's contribution to the EU budget amounted to BGN 0.98 billion.