Budget implementation figures have deflated the claims of Bulgarian Finance Minister Simeon Djankov that the country is in good fiscal health.

According to the report, VAT and excise duty receipts are way below the targets, while direct tax receipts have registered a negligible increase from 2010.

In the first six months of 2011, the state budget received a total of BGN 4.6 M in VAT and excise duty payments, which stands for 45% of the annual target.

Experts say that over 55% of the earmarked VAT and excise duty receipts usually enter the state coffers in the first half of the year, while the catching-up in the remaining period is an unreliable factor.

VAT receipts only stand at BGN 2.9 B, leaving the tax administration another BGN 3.6 to collect in order to fulfill the budget plan.

Excise duty receipts in the period come in at BGN 1.7 B, or 45% of the annual target.

According to Bulgaria's Finance Ministry, there has been a BGN 638 M year-on-year increase in indirect tax collection.

At the same time, direct tax collection (personal income tax, corporate tax) in the first six months of 2011 inches up to slightly over BGN 2 B, compared to BGN 1.9 B in the same period of 2010.

Krasimir Stefanov, Director of the National Revenue Agency has expressed optimism that the 6.5 B annual target will be met.

He has said that he expects BGN 300 M under-collection from social security payments, which should be compensated by VAT over-collection by the Customs Agency.

Stefanov has boasted intense NRA activity over the past two months the sphere of VAT fraud, including a summary report presented to Prime Minister Borisov and Finance Minister Djankov.