Bulgaria registered a monthly budget deficit of BGN 381 M in June 2009, according to data presented by outgoing Finance Minister, Plamen Oresharski.

In the first half of 2009, Bulgaria still registered a surplus but it has been reduced to BGN 173 M, or 0,3% of the GDP. The surplus was accumulated mostly in January.

June is the month with the largest deficit since the beginning of 2009, and the third month in which Bulgaria registered deficit, after in March the monthly deficit was over BGN 300 M, and in May - over BGN 120 M.

The Finance Ministry's data shows that Bulgaria's fiscal reserve was BGN 8,2 B in the first half of 2009.

In the first half of 2009, Bulgaria's tax revenue was 34,9% of the projected tax revenue for 2009, compared to 90,3% for the same period of 2008. The smalled tax revenue has resulted mostly from indirect taxes, corporate taxes, and municipal property taxes.

In the first half of 2009, Bulgaria's state expenditures were 42% of all projected expenditure for 2009 compared to 40,5% for the same period of 2009. The expenditures increased because of capital spending and additional transfers to social security funds.

The Ministry's data shows that in H1 of 2009 Bulgaria contributed BGN 412,5 M in the EU budget, which is 44,3% of its planned payment to the EU for 2009.

While in April 2009 Bulgaria's state budget still had a surplus of BGN 675 M, at the beginning of July it was already down to BGN 173 M.

In May 2009, the former government announced plans for cutting its expenditures by BGN 500 M including freezing state administration salaries, and reducing ministerial pay by 15%.

According to various analysts, Bulgaria might end up with a deficit of up to BGN 2,5 B in December 2009, unless the spending policies are changed.

The Finance Minister nominee of the GERB party, Simeon Djankov, has already stated the party's intention to modify the state budget once it assumed power.

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