CONSOLIDATED FISCAL PROGRAMME PERFORMANCE DATA AS OF 30/06/2017
Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-June 2017 is positive, amounting to BGN 1,746.7 million, or 1.8% of the projected GDP, and is formed by a national budget surplus of BGN 1,777.7 million and by a EU funds deficit of BGN 31.0 million.
The CFP revenues and grants in June 2017 stand at BGN 17,481.8 million. The execution of the annual estimates in the group of tax revenues is good, with 51.9 per cent of the tax revenues planned for the entire 2017 collected for the first six months of the year. Non-tax revenues remain close to those reported for the first six months of 2016, while a decrease is reported for grant revenues mainly due to a baseline effect in 2016 related to the reimbursement from the Commission of some expenditures incurred by Bulgaria at the end of 2015 when was the peak of project payments for the previous 2007 - 2013 programming period. The overall CFP revenues and grants are therefore lower in nominal terms than those reported as of the first six months of 2016. Eliminating the influence of the EU funds, national budget revenues report a nominal growth of 6.8 per cent on a comparable basis.
Tax proceeds, including revenues from social security contributions, total BGN 14,537.8 million. Compared to the data as of June 2016, tax proceeds have risen in nominal terms by 7.8%, or by BGN 1,049.1 million.
Direct tax revenues amount to BGN 2,771.0 million, or 54.4% of the estimates planned for the year, growing by BGN 232.0 million, or by 9.1%, as against the same period of the previous year.
Indirect tax revenues amount to BGN 7,110.3 million, which accounts for 50.7% of the annual estimates. Compared to the data as of June 2016, proceeds in this group have grown by BGN 275.6 million, or by 4.0%. VAT proceeds amount to BGN 4,730.9 million, or 53.9 % of those planned. Compared to the previous year, the VAT revenues have risen by BGN 375.3 million, or by 8.6%. The amount of non-refunded VAT as of end-June 2017 is BGN 64.9 million. The excise duty revenues amount to BGN 2,269.8 million, or 45.1% of the annual estimates. Customs duty proceeds amount to BGN 93.2 million, or 56.1% of the estimates for the year.
Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 627.9 million, or 63.4% of the annual estimates.
Revenues from social security and health insurance contributions are BGN 4,028.6 million, which accounts for 50.8% of the estimates for the year. Compared to the same period of the previous year, the revenues from social security contributions have risen by BGN 504.4 million, or 14.3%, in nominal terms.
Non-tax revenues amount to BGN 2,274.2 million, which accounts for 47.8% of the annual estimates.
Grant revenues amount to BGN 669.8 million, or 25.3% of those planned for the year.
CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for June 2017, amount to BGN 15,735.1 million, which accounts for 42.8% of the annual estimates. For comparison, CFP expenditures for the same period of 2016 amount to BGN 14,638.7 million. The higher expenditures as against end-June2016 are mainly due to the higher amount of social security and health insurance payments, the baseline effect of pension expenditures since their increase in July 2016, the subsidy expenditures and the higher staff costs, including due to the increase in social security contribution expenditures linked to the higher contribution to the Pensions Fund for the persons pursuant to Article 69 of the Social Insurance Code by 20 pps as against 2016. Regardless of the nominal increase in the expenditures as against the same period of the previous year and compared to the annual estimates, the execution of the expenditures throughout the first six months has been in accordance with the funds planned in the 2017 State Budget of the Republic of Bulgaria Law, with no pressure from the expenditures on the budget balance being expected.
Non-interest expenditures amount to BGN 14,812.4 million, which accounts for 42.9% of the annual estimates. Non-interest current expenditures as of June 2017 amount to BGN 13,958.8 million, or 49.3% of the estimates for the year, capital expenditures (including net increment of state reserve) amount to BGN 853.6 million, or 13.8% of the 2017 State Budget of the Republic Bulgaria Law estimates. Interest payments amount to BGN 434.4 million, or 52.5% of those planned for 2017.
The part of Bulgaria's contribution to the EU budget, as paid from the central budget as of June 2017, amounts to BGN 488.3 million, which complies with the existing legislation in the area of EU own resources, i.e. Council Decision 2014/335/EU on the system of own resources of the European Union, Council Regulation (EU, Euratom) No 608/2014 of 26 May 2014 laying down implementing measures for the system of own resources of the European Union and Council Regulation (EU, Euratom) No 609/2014 of 26 May 2014 on the methods and procedure for making available the traditional, VAT and GNI-based own resources and on the measures to meet cash requirements, as amended by Council Regulation (EU, Euratom) 2016/804 of 17 May 2016.
The fiscal reserve (1) as of end-June 2017 is BGN 13.2 billion, including BGN 12.2 billion of fiscal reserve deposits in the BNB and in banks and BGN 1.0 billion of receivables under the EU Funds for certified expenditures, advance payments, etc.
The Consolidated Fiscal Programme implementation data as of 30 June 2017 are published on the website of the Ministry of Finance, in Statistics section.
(1) The scope of the fiscal reserve indicator is in line with §1, item 41 of the Additional Provisions of the Public Finance Law.