FIRST QUARTER 2010 CONSOLIDATED FISCAL PROGRAM IMPLEMENTATION
The statistics for the first quarter 2010 Consolidated Fiscal Program (CFP) implementation have been published.
CFP implementation parameters as of the end of Q1 2010 indicate an underperformance of revenues compared to the ones planned in the 2010 State Budget Law mainly in respect of tax revenues - VAT, excises, corporation taxes, etc. The main factors for the more pessimistic development of revenue dynamics are attributed to the changes in the GDP structure related to exports growth in the past few months and continuing drop of imports; lack of one-off effects in indirect taxes in January 2010; lower consumption; drop in excise goods physical volume; higher excise refunds compared to the same period of last year; lower company profits for 2009 financial year, etc.
The strain in revenues and the pressure on expenditure related mainly to the higher social and health payments, additional expenditure to pay liabilities accumulated in previous years, as well as higher expenditure under EU programs and funds, are the main reasons for the consolidated budget deficit at the end of March 2010.
Revenues at the end of March amount to BGN 5,171.2 or 19.5 % of the provided for in the 2010 State Budget of the Republic of Bulgaria Law (SBRBL).
Tax revenues (including proceeds from security contributions) for Q1 2010 totaled BGN 4,181.9 million, which is 80.9% of the total proceeds under the consolidated fiscal program. Revenues from direct taxes are BGN 1,077.6 million, or 29.0% of those planned for the year. Indirect tax revenues are BGN 1,717.7 million, which is 14.9% of the program for the year. VAT revenues amount to BGN 995.3 million or 14.6 % of the provided for in the 2010 SBRBL and by BGN 606.2 less compared to end of March 2009. The underperformance compared to the same period of last year is due to the considerable revenues in January 2009 as a result of higher expenditure in December 2008 (including substantial public expenditure). On the other hand it is also influenced by the lower volume of transactions in EU Member States - by 18.5 % less than 2009.
Excise duty revenues as of 31 March 2010 amount to BGN 701.6 million being 15.3 % of the annual plan. Customs duty revenues amount to BGN 20.8 million or 15.1 % of the annual plan. Revenues from other taxes (including property taxes and other taxes under the Corporate Income Taxation Law) amount to BGN 190.9 million or 26.5% of the annual plan. Revenues from social security and health insurance contributions for Q1 2010 are BGN 1,195.6 million being 23.3 % of the annual plan.
Non-tax revenues and grants amount to BGN 989.3 million or 18.2 % of the annual plan. Compared to same period of 2009 an underperformance by BGN 251.3 million is observed due mainly to EU funds advance payments at the beginning of 2009 that have a one-off effect but have an effect on the comparison of total revenue amount for Q1 2010.
The expenditure under the consolidated budget (including the contribution of Republic of Bulgaria to the EU general budget) as of 31 March 2010 amount to BGN 6,840.2 million being 25.3 % of the annual plan. Non-interest current expenditure amount to BGN 5,569.4 million (26.0 % of the annual plan), capital expenditure (including the net growth of the state reserve) amount to BGN 773.4 million (19.6 % of the provided for in the 2010 SBRBL) and interest payments amount to BGN 251.2 million (43.2 % of the 2010 annual plan).
The part of Bulgaria's contribution to the EU general budget, paid as of March 2010 from the central budget, amounted to BGN 246.2 million which is in compliance with the requirements of Council Regulation 1150/2000.
As of end-March the budget balance under the consolidated fiscal program was negative, amounting to BGN 1,669.0 million, the reported only in March deficit amounting to BGN 270.9 million. The budget balance under the consolidated fiscal program for Q1 2010 is formed by a deficit under the national budget of BGN 1,384.2 million and under EU funds of BGN 284.9 million.
The fiscal reserve as of 31 March 2010 amounted to BGN 6.4 billion.
The data on the implementation of the consolidated budget as of 31 March 2010 are published in "Budget" category/ "Statistics" section on the website of the Ministry of Finance.