BUDGET EXPENDITURES FALL BY APPROXIMATELY BGN 570 MILLION FOR THE FIRST QUARTER VERSUS THE SAME PERIOD OF 2010
The budgetary stance of the country during the first quarter of 2011 improved significantly as compared to the same period of 2010, the cash deficit under the Consolidated Fiscal Program (CFP) shrinking to BGN 741.9 million compared to BGN 1 669.0 million at end-March 2010. The deficit under the CFP for the first quarter of 2011 amounts to 1.0% of projected GDP, compared to 2.4% of GDP for the same period of 2010. The improvement in the budget balance is due to better performance in terms of both revenue and expenditure. Revenue and expenditure parameters develop as planned for the period.
The nominal improvement in the budget balance for the first quarter of 2011 as compared to the same period a year ago amounts to BGN 927.1 million. The budget balance under the consolidated budget at end-March 2011 is formed by a deficit under the national budget of BGN 751.8 million and a surplus under the EU funds of BGN 9.9 million. The budget balance under the CFP on a monthly basis for March is positive, amounting to BGN 8.6 million.
At end-March revenues and grants stand at BGN 5 529.5 million, or 21.1% of those planned in the 2011 State Budget Law. Compared to the same period of 2010, CFP proceeds as of the end of the first quarter rise by 6.9% or BGN 358.3 million. The improvement as compared to end-March 2010 is due mostly to higher indirect tax revenues which increased by BGN 281.5 million (16.4%) and higher revenues from social security and health insurance contributions, where the growth is by BGN 136.6 million or 11.4%.
Tax revenues, including social security and health insurance contributions, as of the end of March amount to BGN 4,580.0 million, or 82.8% of all revenues under the CFP. Revenues from direct taxes are BGN 1,074.8 million, or 28.3 % of those planned for the year. Indirect tax revenues are BGN 1,999.2 million, or 19.2% of those planned for the year. VAT revenues amount to BGN 1,165.3 million, or 18.0% of those planned in the budget. Excise revenues as of the end of March amount to BGN 802.4 million, or 21.1% of those planned for the year. Customs duty revenues are BGN 28.6 million, or 28.6 % of those planned for the year. Revenues from other taxes (including property taxes and other taxes under the Corporate Income Taxation Law) are BGN 173.8 million, or 22.7% of those planned for the year. Revenues from social security and health insurance contributions as of 31 March are BGN 1,332.2 million, or 23.2% of those planned for the year.
Non-tax revenues and grants amount to BGN 949.4 million, or 17.2% of those planned for the year.
The expenditures under the consolidated budget (including the contribution of Republic of Bulgaria to the EU general budget) as of 31 March amount to BGN 6,271.4 million, or 22.3% of those planned for the year. Year on year improvement is reported - the overall expenditure under the consolidated budget are by BGN 568.8 million (8.3%) less. In structural terms compared to March 2010 capital expenditure, subsidies for non-financial institutions and the wage bill are lower, while health insurance payments are higher. Non-interest current expenditure amount to BGN 5,330.8 million (23.7% of those planned for the year), capital expenditure (including net increment of state reserve) amount to BGN 406.5 million (11.0% of those planned), and interest payments лихвените - to BGN 284.0 million (43.0% of those planned in the 2011 budget).
The part of Bulgaria's contribution to the EU general budget, paid in Q1 2011 from the central budget, amounted to BGN 250.1 million, which is in compliance with the requirements of Council Regulation 1150/2000.
The fiscal reserve as of 31 March 2011 amounted to BGN 4.7 billion.
The data on the implementation of the consolidated budget as of 31 March 2011 are published in „Statistics" section on the website of the Ministry of Finance. The statistical data are accompanied by an Information bulletin on the execution of the consolidated budget, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.