CONSOLIDATED FISCAL PROGRAMME PERFORMANCE DATA AS OF 31/07/2017
Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-July 2017 is positive, amounting to BGN 1,971.7 million, or 2.0% of the projected GDP, and is formed by a national budget surplus of BGN 1,892.9 million and by a surplus of EU funds of BGN 78.8 million. The national budget balance reports an improvement in structural terms as compared to the same period of 2016 mainly due to the growth of revenues from tax and social security and health insurance contributions, while the balance of EU fund accounts has deteriorated this year due to a baseline effect in 2016 related to the EU grants reimbursed to Bulgaria at the beginning of 2016 for expenditures incurred at the end of 2015 when was the peak of project payments under the previous 2007 - 2013 programming period.
The CFP revenues and grants in July 2017 stand at BGN 20,477.5 million, or 57.8% of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues have risen by BGN 1,236.2 million, or by 6.7%, with grant proceeds being lower.
Tax proceeds, including revenues from social security contributions, total BGN 17,002.8 million, which accounts for 60.6% of the revenues planned for the year. Compared to the data as of July 2016, tax proceeds have risen in nominal terms by 8.0%, or by BGN 1,259.3 million.
Direct tax revenues amount to BGN 3,225.8 million, or 63.3% of the estimates planned for the year, growing by BGN 257.2 million, or by 8.7%, as compared to same period of the previous year.
Indirect tax revenues amount to BGN 8,338.6 million, which accounts for 59.5% of the annual estimates. Compared to the data as of July 2016, proceeds in this group have grown by BGN 371.6 million, or by 4.7%. VAT proceeds amount to BGN 5,471.6 million, or 62.3% of those planned. Compared to the previous year, VAT revenues have risen by BGN 382.8 million, or by 7.5%. The amount of non-refunded VAT as of end-July 2017 is BGN 66.5 million. The excise duty revenues amount to BGN 2,736.1 million, or 54.3% of the annual estimates. Customs duty proceeds amount to BGN 108.7 million, or 65.5% 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 702.4 million, or 70.9% of the annual estimates.
Revenues from social security and health insurance contributions are BGN 4,736.0 million, which accounts for 59.7% 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 592.6 million, or by 14.3%, in nominal terms.
Non-tax revenues amount to BGN 2,596.2 million, which accounts for 54.6% of the annual estimates.
Grant revenues amount to BGN 878.5 million, or 33.2% of those planned for the year.
CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for July 2017, amount to BGN 18,505.9 million, which accounts for 50.3% of the annual estimates. For comparison, CFP expenditures for the same period of 2016 amount to BGN 17,269.8 million. The higher expenditures, as compared to end-July 2016, 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 new pension increase as from July 2017, as well as the higher 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 to Persons Pursuant to Article 69 Fund of the Social Insurance Code by 20 pps as against 2016.
Non-interest expenditures amount to BGN 17,342.2 million, which accounts for 50.2% of the annual estimates. Non-interest current expenditures as of July 2017 amount to BGN 16,322.8 million, or 57.6% of the estimates for the year, capital expenditures (including net increment of state reserve) amount to BGN 1,019.4 million, or 16.4% of the 2017 State Budget of the Republic Bulgaria Law estimates. Interest payments amount to BGN 604.0 million, or 73.1% of those planned for 2017.
The part of Bulgaria's contribution to the EU budget, as paid from the central budget as of July 2017, amounts to BGN 559.7 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 July 2017 is BGN 11.7 billion, including BGN 10.8 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.9 billion of receivables under the EU Funds for certified expenditure, advance payments, etc.
The Consolidated Fiscal Programme implementation data as of 31 July 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.