Bulgaria Records Negative Budget Balance in February - Stat

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Bulgaria: Bulgaria Records Negative Budget Balance in February - Stat

As of end-February Bulgaria's budget balance is negative, amounting to BGN 688.2M, according to the official data released by the Financial Ministry.

Compared to the same period of the previous year there is an improvement in the Consolidated Fiscal Program (CFP) budget balance by BGN 43.8M, or 0.1% of the projected GDP.

Consolidated revenues and grants under CFP as of February stand at BGN 4,202.8M, or 13.5 % of the annual plans for 2014 under the State Budget Law. Compared to February 2013, CFP revenues grow by BGN 375.5M (9.8 %), with growth being registered with grants mostly.

At end-February tax proceeds, including revenues from social security contributions, total BGN 3,250.8M, which is 77.3 % of the overall CFP proceeds. Proceeds in this group account for 13.4% of the revenues planned for 2014 in the State Budget of the Republic of Bulgaria Law.

The tax revenue parameters register a slow growth as of end-February compared to January 2014. The main reason for this is an amendment to the single account arrangement and its division into four new accounts for the payment of taxes and social security contributions which resulted in the delay in the payments of physical and legal persons to the NRA from February to March 2014, i.e. when the new amendments were adopted on 4 March 2014.

At end-February 2014, revenues from indirect taxes amount to BGN 1,775.8M, or 13.8 % of the plans and form 76.8 % of state budget revenues including VAT - BGN 1,160.9M, or 14.0 %; excise duties - BGN 588.1M, or 13.4 %; customs duties - BGN 23.3M, or 17.1 %.

Compared to February 2013, indirect tax revenues register a nominal drop by BGN 127.4M resulting from the lower VAT revenue due to the VAT not refunded on time in January 2013, i.e. data are incomparable. The VAT refunded in February 2014 is by BGN  187,3M more compared to February 2013 and is due to the measures adopted in the second half of 2013 aimed at strict meeting of the deadlines for VAT refunds to companies by the revenue administration whereas due to the lack of strict accounting and control of VAT refunds, considerable non-refunded amounts of VAT were reported in 2013.

At the same time, the negative trend of a slow-down in excise duty proceeds witnessed in the first half of the previous year has been curbed, with excise duty revenues at end-February being by BGN 36.9M higher than the first two months of 2013.

Revenues from direct taxes amount to BGN 522.3M, or 12.1 % of the plans for the year, and they grow by 29.6 % compared to the same period of last year. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 77.3M, or 8.6 % of the plans for 2014. Revenues from social security and health insurance contributions are BGN 875.4M, or 13.9 % of those planned for the year.

Non-tax revenues and grant revenues amount to BGN 952.0M, or 14.2 % of those planned for the year.

The expenditures under the consolidated fiscal program, including the contribution of the Republic of Bulgaria to the EU budget, as of end-February amount to BGN 4,891M, which is 15.0 % of the annual plans. Compared to the same period of last year, expenditures register a growth by 7.5 per cent (BGN 334.1M) mostly due to the higher capital expenditure, social and health insurance expenditure, etc.

Non-interest expenditures amount to BGN 4,451.1M and increase by BGN 462.6M compared to February 2013, with the greatest increase being for capital expenditure by BGN 174.3M in connection to the efforts made for an accelerated absorption of EU funds and programs. We should also take account of the basic effect of the increase in pensions as from 1 April 2013 on pension expenditures and therefore, compared to February 2013 when the increase had not been in effect, there is an increase by BGN 102.2M. Interest payments amount to 165.8M, or 24.8 % of the plans for 2014.

The part of Bulgaria's contribution to the EU budget, as paid as of end-February from the central budget, amounts to BGN 274.1M.

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Tags: budget balance, Financial Ministry, Consolidated Fiscal Program, consolidated revenues, tax proceeds, indirect taxes, excise duty, non-tax revenues
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