:: Ministry of Finance of the Republic of Bulgariahttp://www.minfin.bg/en/Sat, 11 Sep 2021 10:22:04 +0300enhourly1http://www.minfin.bg/en/news/11302http://www.minfin.bg/en/news/11302Fri, 26 Feb 2021 16:45:00 +0200Based on the monthly data on cash execution of first-level spending units’ budgets, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of 31 January 2021 is positive, amounting to BGN 409.7 million, or 0.3% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 483.1 million under the national budget and a deficit of BGN 73.4 million under EU funds. CFP revenues, grants and donations for January 2021 amount to BGN 3,712.5 million, or 7.8% of the annual estimates. Compared to the same period of the previous year, their amount is similar, decreasing in nominal terms by BGN 62.0 million or by 1.6%. Tax proceeds, including revenues from social security contributions, total BGN 3,131.5 million, which accounts for 8.5% of the tax revenues planned for the year. Direct tax revenues amount to BGN 409.9 million, or 5.9% of those planned for the year. Indirect tax proceeds amount to BGN 1,772.8 million (10.4% of the annual estimates), with VAT proceeds amounting to BGN 1,329.3 million (11.8% of those planned), excise duty revenues amounting to BGN 418.7 million, (7.5% of the estimates), and customs duty proceeds amounting to BGN 18.7 million (8.0% as against the annual estimates). Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 65.5 million, or execution of 5.1% of the annual estimates. Revenues from social security and health insurance contributions are BGN 883.3 million, which accounts for 7.6% of the estimates for the year. Non-tax revenues amount to BGN 470.9 million, or 7.1% of the annual estimates, while grant and donation proceeds amount to BGN 110.1 million. CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for January 2021, amount to BGN 3,302.9 million, which accounts for 6.3% of the annual estimates. For comparison, the CFP expenditures for January 2020 amount to BGN 2,895.9 million. The nominal increase in comparison to the same period of the previous year is mostly related to the social and economic measures taken to tackle the negative impact of the COVID-19 pandemic, as well as with higher social expenditures (mainly for pensions), staff costs, etc. Non-interest expenditures amount to BGN 3,096.3 million, which accounts for 6.2% of the annual estimates. Non-interest current expenditures for January 2021 amount to BGN 2,981.8 million, capital expenditures (including net increment of state reserve) amount to BGN 112.9 million. The current and capital transfers to other countries amount to BGN 1.6 million. Interest payments amount to BGN 41.0 million, or 6.2% of those planned for 2021. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31.01.2021, amounts to BGN 165.5 million, which complies with the existing legislation in the area of EU own resources. The fiscal reserve as of 31.01.2021 is BGN 9.7 billion, including BGN 8.6 billion of fiscal reserve deposits in the BNB and banks and BGN 1.1 billion of receivables under the EU Funds for certified expenditures, advance payments, etc. The Consolidated Fiscal Programme implementation data as of 31 January 2021 are published on the website of the Ministry of Finance, in Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.http://www.minfin.bg/en/news/10838http://www.minfin.bg/en/news/10838Thu, 31 Oct 2019 17:40:00 +0200Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of September 2019 is positive, amounting to BGN 1,264.5 million, or 1.1% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 1,205.7 million under the national budget and of BGN 58.8 million under EU funds. The CFP revenues, grants and donations as of September 2019 stand at BGN 32,797.9 million, or 74.8% of the annual estimates. Compared to the same period of the previous year, CFP grants and donations have grown by BGN 3,634.3 million in nominal terms, including tax and non-tax revenues by BGN 3,224.6 million (11.6%), while grant and donation proceeds (mostly EU programme and fund grants) have risen by BGN 409.7 million. Tax proceeds, including revenues from social security contributions, total BGN 26,096.2 million, which accounts for 75.5% of the tax revenues planned for the year. Direct tax revenues amount to BGN 4,660.2 million, or 71.0% of those planned for the year. Indirect tax revenues amount to BGN 12,758.7 million, which accounts for 77.6% of the annual estimates. VAT proceeds amount to BGN 8,416.5 million, or 77.7% of those planned. The excise duty revenues amount to BGN 4,136.7 million, or 77.6% of the annual estimates. Customs duty proceeds amount to BGN 172.7 million, or 72.9% of the annual estimates. Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 927.7 million, or 79.3% of the annual estimates. Revenues from social security and health insurance contributions are BGN 7,749.6 million, which accounts for 74.7% of the estimates for the year. Non-tax revenues amount to BGN 4,954.9 million, or 74.8% of the annual estimates. A baseline effect appears in the non-tax revenue part relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018 which have changed the mechanism for collection of revenues under the Fund’s budget. The revenues under the Fund’s budget as of September 2019 are therefore higher than the proceeds for the same period of 2018. Grant and donation proceeds amount to BGN 1,746.8 million. CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for September 2019, amount to BGN 31,533.4 million, which accounts for 68.1% of the annual estimates. The nominal increase in expenditures in comparison to the same period of the previous year is due to the expenditures incurred under the budget of the Ministry of Defence under the Acquisition of a New Type of Military Aircraft investment project for the air forces of the Republic of Bulgaria, as well as to the higher amount of staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), an increase in subsidy expenditures, etc. Non-interest expenditures amount to BGN 29,954.3 million, which accounts for 67.9% of the annual estimates. Non-interest current expenditures as of September 2019 amount to BGN 25,337.8 million, capital expenditures (including net increment of state reserve) amount to BGN 4,588.7 million. The current and capital transfers to other countries amount to BGN 27.8 million. Interest payments amount to BGN 581.6 million, or 86.9% of those planned for 2019. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30.09.2019, amounts to BGN 997.5 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 as of 30.09.2019 is BGN 10.14 billion, including BGN 10.12 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.02 billion of receivables under the EU Funds for certified expenditures, advance payments, etc. The Consolidated Fiscal Programme implementation data as of 30 September 2019 are published on the website of the Ministry of Finance, in Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.http://www.minfin.bg/en/news/10836http://www.minfin.bg/en/news/10836Thu, 31 Oct 2019 11:06:00 +0200The central government debt[1] as at end-September 2019 stood at EUR 11,956.7 million. Domestic debt amounted to EUR 2,934.7 million and external debt – to EUR 9,022.0 million. At the end of the reporting period the central government debt/gross domestic product (GDP)[2] ratio was 19.7%, with the share of domestic debt being 4.8% and of external debt – 14.9%. In the central government debt structure, domestic debt at the end of the period amounted to 24.5%, and external debt – to 75.5%. As of 30 September 2019, the central government guaranteed debt was EUR 73.0 million. Domestic guarantees amounted to EUR 33.8 million and external guarantees – to EUR 39.1 million. The central government guaranteed debt/GDP ratio is 0.1%. According to the official register of government and government guaranteed debt, kept by the Ministry of Finance on the grounds of Article 38, paragraph 1 of the Government Debt Law, at end-September 2019 the government debt reached EUR 11,188.0 million, being 18.4% of GDP. Domestic debt amounted to EUR 2,766.2 million and external debt – to EUR 8,421.8 million. Government guaranteed debt in September 2019 amounted to EUR 902.0 million. Domestic guarantees amounted to EUR 33.8 million, the government guaranteed debt/ GDP ratio being 1.5%. The Bulletin can be found in the Statistics Section/Central Government Debt and Guarantees Monthly Bulletin.   Note: In accordance with Article 36, para.3 of the Public Finance Law /in force from 01.01.2014 prom. SG, issue No 15 of 15.02.2013, amended SG, issue No 95 of 8.12.2015, amended and supplemented SG, issue No 43 of 7.06.2016/, starting from June 2016, the Ministry of Finance publishes a Central Government Debt and Guarantees monthly bulletin. Information about the amount, structure and dynamics of the government and government guaranteed debt (undertaken under the procedure of the Government Debt Law), as published in the Government Debt bulletin until May 2016, is included in the attachment on page 12 of the new bulletin.    [1] Central government debt is the debt of the central government pursuant to Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community. You can find a list of the entities which, in addition to public authorities and institutions, are included in the central government as per the European system of national and regional accounts in the Community (ЕСС 2010) as well as the Manual on government deficit and debt of Eurostat (the Commission) HERE [2] Based on forecast GDP data as per the autumn macroeconomic forecast of the Ministry of Finance for 2019http://www.minfin.bg/en/news/10817http://www.minfin.bg/en/news/10817Wed, 02 Oct 2019 11:19:00 +0300The new issue of the Monthly Report on Bulgarian Economy was published. It assesses the short-term dynamics of main economic indicators, with data published up to September 17 2019. The entire document can be downloaded here.http://www.minfin.bg/en/news/10814http://www.minfin.bg/en/news/10814Tue, 01 Oct 2019 11:35:00 +0300Based on the preliminary data and estimates, the excess of revenues over expenditures under the Consolidated Fiscal Programme (CFP) as of September 2019 is expected to amount to BGN 1,266.6 million (1.1% of the projected GDP). Key CFP parameters based on preliminary data and estimates: As of September 2019, CFP revenues and grants are expected to be BGN 32,808.7 million, which accounts for 74.8% of the annual estimate. Compared to the nine months of 2018, CFP revenues grow by BGN 3,645.1 million, with some growth being registered for both tax and non-tax revenues and proceeds from grants and donations where EU programme and fund grants are mainly received. The growth of tax revenues is BGN 2,125.1 million, non-tax revenues grow by BGN 1,111.0 million, while proceeds from grants and donations grow by BGN 409.1 million. A baseline effect mostly appears with regard to non-tax revenues relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018. As of September 2019, the Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 31,542.1 million, which accounts for 68.1% of the annual estimates[1]. For comparison, the CFP expenditures for the nine months of 2018 amount to BGN 26,500.9 million. The nominal increase in comparison to the same period of the previous year is due to the higher capital expenditures (mostly due to the expenditures related to the implementation of the investment project for the acquisition of a new type of military aircraft for the Bulgarian air forces),the staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), etc. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30.09.2019, amounts to BGN 997.5 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 statistical data and the Information Bulletin on the Execution of the State Budget and the key Consolidated Fiscal Programme indicators based on the monthly data on cash execution of first-level spending units as of September 2019 will be published on the website of the Ministry of Finance at the end of October 2019.   [1] Estimates to the Law amending the 2019 State Budget of the Republic of Bulgaria Law (promulgated in the State Gazette, issue 60 of 2019, effective as from 30.07.2019).http://www.minfin.bg/en/news/10812http://www.minfin.bg/en/news/10812Mon, 30 Sep 2019 17:03:00 +0300Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-August 2019 is positive, amounting to BGN 1,112.6 million, or 1.0% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 1,016.9 million under the national budget and of BGN 95.6 million under EU funds. After the adoption of the Law amending the 2019 State Budget of the Republic of Bulgaria Law and after the ratification by the National Assembly of the international contracts on purchasing F-16 Block 70 aircraft, armament and related systems for long-term operation and maintenance and thorough preparation of pilots and supporting staff, in August the Ministry of Defence transferred the amount of USD 1.2 billion to a US government account. The Bulgarian side has thus fulfilled its commitment under the contracts signed under the acquisition of a new type of military aircraft investment expenditure project of the air forces of the Republic of Bulgaria and commenced the practical implementation thereof. The CFP revenues, grants and donations as of August 2019 stand at BGN 29,305.8 million, or 66.8% of the annual estimates. Compared to the same period of the previous year, CFP grants and donations have grown by BGN 3,330 million in nominal terms, including tax and non-tax revenues by BGN 3,031.9 million (12.3%), while grant and donation proceeds (mostly EU programme and fund grants) have risen by BGN 298.1 million. Tax proceeds, including revenues from social security contributions, total BGN 23,256.2 million, which accounts for 67.3% of the tax revenues planned for the year. Direct tax revenues amount to BGN 4,291.5 million, or 65.4% of those planned for the year. Indirect tax revenues amount to BGN 11,204.2 million, which accounts for 68.2% of the annual estimates. VAT proceeds amount to BGN 7,401.8 million, or 68.3% of those planned. The excise duty revenues amount to BGN 3,616.3 million, or 67.8% of the annual estimates. Customs duty proceeds amount to BGN 153.3 million, or 64.7% of the annual estimates. Proceeds from other taxes, including property and other taxes under the Corporate Income Tax Law, amount to BGN 869.5 million, or 74.3% of the annual estimates. Revenues from social security and health insurance contributions are BGN 6,890.9 million, which accounts for 66.4% of the estimates for the year. Non-tax revenues amount to BGN 4,463.4 million, or 67.3% of the annual estimates. It should be noted that a baseline effect appears in the non-tax revenue part relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018 which have changed the mechanism for collection of revenues under the Fund’s budget. The revenues under the Fund’s budget as of August 2019 are therefore higher than the proceeds for the same period of 2018. Grant and donation proceeds amount to BGN 1,586.2 million. CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget for August 2019, amount to BGN 28,193.3 million, which accounts for 60.9% of the annual estimates. The nominal increase in expenditures in comparison to the same period of the previous year is due to the expenditures incurred in August under the budget of the Ministry of Defence under the Acquisition of a New Type of Military Aircraft investment project for the air forces of the Republic of Bulgaria, as well as to the higher amount of staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), an increase in subsidy expenditures, etc. Non-interest expenditures amount to BGN 26,820.1 million, which accounts for 60.8% of the annual estimates. Non-interest current expenditures as of August 2019 amount to BGN 22,525.3 million, capital expenditures (including net increment of state reserve) amount to BGN 4,270.9 million. The current and capital transfers to other countries amount to BGN 23.8 million. Interest payments amount to BGN 469.5 million, or 70.2% of those planned for 2019. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31.08.2019, amounts to BGN 903.6 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 as of 31.08.2019 is BGN 10.3 billion, including BGN 10.0 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.3 billion of receivables under the EU Funds for certified expenditures, advance payments, etc. The Consolidated Fiscal Programme implementation data as of 31 August 2019 are published on the website of the Ministry of Finance, in Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.http://www.minfin.bg/en/news/10807http://www.minfin.bg/en/news/10807Mon, 30 Sep 2019 14:22:00 +0300Central government debt[1] stands at EUR 11,971.3 million as at end-August 2019. Domestic debt amounts to EUR 2,944.1 million and external debt – to EUR 9,027.2 million. At the end of the reporting period the central government debt-to-gross domestic product (GDP) ratio[2] is 20.3%, with the share of domestic debt being 5.0% and of external debt – 15.3% of GDP. In the central government debt structure, at the end of the period domestic debt amounts to 24.6%, and external debt – to 75.4%. As of 31 August 2019, central government guaranteed debt amounts to EUR 74.1 million. Domestic guarantees amount to EUR 33.4 million and external guarantees – to EUR 40.7 million. The central government guaranteed debt/GDP ratio is 0.1%. According to the official register of government and government guaranteed debt, kept by the Ministry of Finance on the grounds of Article 38(1) of the Government Debt Law, at end-August 2019 government debt reaches EUR 11,193.2 million, or 19.0% of GDP. Domestic debt amounts to EUR 2,766.2 million and external debt – to EUR 8,427.0 million. Government guaranteed debt amounts to EUR 912.4 million in August 2019. Domestic guarantees amount to EUR 33.4 million, with the government guaranteed debt-to-GDP ratio being 1.5%. The Bulletin can be found in the Statistics Section/Central Government Debt and Guarantees Monthly Bulletin. Note: In accordance with Article 36(3) of the Public Finance Law /in force as from 01.01.2014 SG, issue No 15 of 15.02.2013, amended SG, issue No 95 of 8.12.2015, amended and supplemented SG, issue No 43 of 7.06.2016/, starting from June 2016, the Ministry of Finance publishes a Central Government Debt and Guarantees monthly bulletin. Information about the amount, structure and dynamics of government and government guaranteed debt/assumed under the procedure of the Government Debt Law/, as published in the Government Debt bulletin until May 2016, is included in the attachment on page 12 of the new edition.   [1] Central government debt is the debt of the central government sub-sector pursuant to Council Regulation (EC) No 479/2009 of 25.05.2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community. You can find a list of the units included in the central government sub-sector in addition to government bodies and institutions as per the European System of National and Regional Accounts in the Community (ESA 2010) and the Eurostat Manual on Government Debt and Deficit.HERE   [2] Forecast GDP data as per the updated spring forecast of the Ministry of Finance for 2019.http://www.minfin.bg/en/news/10802http://www.minfin.bg/en/news/10802Mon, 16 Sep 2019 16:42:00 +0300In 2018 a relatively high gross domestic product (GDP) growth was registered in the country for a fourth consecutive year. The domestic demand rose at an accelerated rate. Compared to 2017, a higher growth was registered both for private and public consumption and for investment. GDP rose by 3.1% in real terms compared to the 3.8% in 2017. The lower growth was due to the drop in exports. Following the sustainable increase in exports in the 2010-2017 period, 2018 saw a real drop as a result of the lower trade in goods. The dynamics was conditioned by a slow-down in external demand and by several temporary negative effects. Despite the drop in exports, there is no deterioration as regards the competitiveness indicators. The positive current account balance and the considerable improvement in the indebtedness indicators reflected the maintenance of the country’s sustainable external stance. The unemployment rate reached its historically lowest level of 5.2%. Consumer trust, in particular consumer expectations for employment, rose up to levels exceeding the pre-crisis ones. The favourable household expectations together with the increase in disposable income and consumer credits and mortgage loans had a positive influence on the penchant for consumption. A more considerable increase in the number of low- and medium-qualified people employed was observed in the past year, which has a limitation effect on the average income, other things being equal. In 2018 the inflation sped up to an annual average of 2.6% in response to the higher international commodity prices and the higher demand in the economy. Several shocks in the supply caused a rise in the overall price level and in the baseline inflation. In 2018 the consolidated fiscal programme balance was at a surplus of 0.1% of GDP. The budget outcome on accrual basis was 2%. The favourable development of the government balance was due to a growth of budget proceeds linked to the positive macroeconomic development together with the improved collection. The public sector also contributed positively to the economic growth both as regards the greater government staff costs and as regards the higher investment. You can read the full analysis here.http://www.minfin.bg/en/news/10778http://www.minfin.bg/en/news/10778Fri, 30 Aug 2019 16:54:00 +0300Based on the monthly data of first-level spending units, the CFP balance on a cash basis as of July 2019 is positive, amounting to BGN 3,223.6 million (2.8 % of forecast GDP) and is formed by an excess of revenues over expenditures under the national budget of BGN 3,033.1 million and under EU funds of BGN 190.5 million. The CFP revenues, grants and donations as of July 2019 stand at BGN 25,979.9 million, or 59.2 % of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues have grown by BGN 2,855.5 million, (13.2 %), while proceeds from grants and donations (mainly grants under EU Programmes and Funds) have increased by BGN 576.9 million. Tax proceeds, including revenues from social security and health insurance contributions, total BGN 20,488.6 million, which is 59.3 % of the annual plans. Revenues from direct taxes amount to BGN 3,896.8 million, or 59.4 % of the annual estimates. Indirect tax revenues amount to BGN 9,778.0 million, or 59.5 % of the annual plans. The VAT proceeds amount to BGN 6,463.2 million, or 59.7 % of the plan. The excise duty revenues amount to BGN 3,151.9 million (59.1 % of the annual estimates). Custom duties revenues are BGN 134.2 million or 56.7 % of the annual plan. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 799.7 million, or 68.4 % performance of the annual estimates. Revenues from social security and health insurance contributions are BGN 6,014.0 million, or 57.9 % of those planned for the year. Non-tax revenues amount to BGN 4,041.7 million, or 61.0 % of the annual estimates. It should be noted that as regards non-tax revenues there is a baseline effect in the part of revenues to the budget of the Energy Security Fund due to the amendments to the Energy Law which entered into force on 01.07.2018 and changed the mechanism of collection of revenues to the Fund’s budget. For this reason the revenues to the Fund’s budget as of July 2019 were higher than the revenues for the same period of 2018. Proceeds from grants and donations amount to BGN 1,449.6 million. The expenditures under the CFP, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 22,756.3 million as of July 2019, which is 42.9 % of the annual estimates[1]. Compared to the same period of the previous year, CFP expenditures increase in nominal terms by 10.8 per cent, which is mainly due to the higher staff costs (due to the 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018, the indexation of pensions in July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), the increase in expenditures on subsidies, etc. Non-interest expenditures amount to BGN 21,483.3 million, which is 48.7 % of the annual plans. Non-interest current expenditures as of July 2019 amount to BGN 19,632.7 million and capital expenditures (including net increment of state reserve) amount to BGN 1,833.5 million. The current and capital transfers to other countries amount to BGN 17.1 million. Interest payments amount to BGN 461.2 million, or 68.9 % of those planned for 2019. The part of Bulgaria's contribution to the EU budget, paid from the central budget as of 31.07.2019, amounts to BGN 811.9 million, which complies with the current legislation in the area of EU own resources – Council Decision 2014/335/EU, Euratom 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) No 2016/804 of 17 May 2016. Fiscal reserve as of 31.07.2019 is BGN 12.4 billion, including BGN 11.8 billion fiscal reserve deposits in BNB and banks and BGN 0.6 billion receivables under the EU Funds for certified expenditure, advance payments, etc. The Consolidated Fiscal Programme performance data as of 31 July 2019 are published on the website of the Ministry of Finance in Statistics section. The statistical data are accompanied by an Information Bulletin on the Execution of the State Budget and the main indicators of the consolidated fiscal programme, which presents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.        [1] Estimates under the Law amending and supplementing the 2019 State Budget of the Republic of Bulgaria Law (prom., SG, issue No 60 of 2019, in force from 30.07.2019).http://www.minfin.bg/en/news/10776http://www.minfin.bg/en/news/10776Fri, 30 Aug 2019 14:18:00 +0300The central government debt[1] as at end-July 2019 stood at EUR 11,877.7 million. Domestic debt amounted to EUR 2,847.2 million and external debt – to EUR 9,030.6 million. At the end of the reporting period the central government debt/gross domestic product (GDP)[2] ratio was 20.1 %, with the share of domestic debt being 4.8 % and of external debt – 15.3 %. In the central government debt structure, domestic debt at the end of the period amounted to 24.0 %, and external debt – to 76.0 %. As of 31 July 2019, the central government guaranteed debt was EUR 76.3 million. Domestic guarantees amounted to EUR 33.6 million and external guarantees – to EUR 42.7 million. The central government guaranteed debt/GDP ratio is 0.1 %. According to the official register of government and government guaranteed debt, kept by the Ministry of Finance on the grounds of Article 38, paragraph 1 of the Government Debt Law, at end-July 2019 the government debt reached EUR 11,094.2 million, being 18.8 % of GDP. Domestic debt amounted to EUR 2,664.0 million and external debt – to EUR 8,430.2 million.  Government guaranteed debt in July 2019 amounted to EUR 915.1 million. Domestic guarantees amounted to EUR 33.6 million, the government guaranteed debt/ GDP ratio being 1.6 %. The Bulletin can be found in the Statistics Section/Central Government Debt and Guarantees Monthly Bulletin.     Note: In accordance with Article 36, para.3 of the Public Finance Law /in force from 01.01.2014 prom. SG, issue No 15 of 15.02.2013, amended SG, issue No 95 of 8.12.2015, amended and supplemented SG, issue No 43 of 7.06.2016/, starting from June 2016, the Ministry of Finance publishes a Central Government Debt and Guarantees monthly bulletin. Information about the amount, structure and dynamics of the government and government guaranteed debt (undertaken under the procedure of the Government Debt Law), as published in the Government Debt bulletin until May 2016, is included in the attachment on page 12 of the new bulletin.      [1] Central government debt is the debt of the central government pursuant to Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community. You can find a list of the entities which, in addition to public authorities and institutions, are included in the central government as per the European system of national and regional accounts in the Community (ЕСС 2010) as well as the Manual on government deficit and debt of Eurostat (the Commission) HERE   [2] Based on forecast GDP data as per the spring macroeconomic forecast of the Ministry of Finance for 2019http://www.minfin.bg/en/news/10755http://www.minfin.bg/en/news/10755Wed, 31 Jul 2019 19:03:00 +0300Based on the preliminary data and estimates, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of July 2019 is expected to be positive, amounting to BGN 2,979.1 million (2.8% of the projected GDP). On a monthly basis, the CFP budget balance is close to balance only for July. The key factors behind the forecast excess of revenues over expenditures for the first seven months of 2019 are the positive revenue development, on the one hand, and the relatively low performance of expenditures as a result of concentrating the majority of investment and other expenditures in Q3 and Q4, on the other hand. Having in mind the above reasons, budget performance in the first half of the year is traditionally characterised by an excess of revenues over expenditures, while the second half, in particular Q4, reports a negative budget balance. The budget balance for the first seven months of the year cannot therefore be correlated to the annual fiscal goal set by the estimates to the 2019 State Budget of Republic of Bulgaria Law. Key CFP parameters based on preliminary data and estimates: As of July 2019, CFP revenues and grants are expected to be BGN 25,942.7 million, which accounts for 59.2% of the annual estimate. Compared to July 2018, CFP revenues grow by BGN 3,395.2 million, with some growth being registered for both tax and non-tax revenues and proceeds from grants and donations where EU programme and fund grants are mainly received. Based on the estimates available, tax revenues report a growth by BGN 1,755.7 million, non-tax revenues – by BGN 1,068.8 million, and proceeds from grants and donations – by BGN 570.7 million. A baseline effect appears in the non-tax revenue part relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018 which have changed the mechanism for collection of revenues under the Fund’s budget. The revenues under the Fund’s budget as of July 2019 are therefore higher than the proceeds for the same period of 2018. As of July 2019, the Consolidated Fiscal Programme expenditures, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 22,696.5 million, which accounts for 49.0% of the annual estimates[1], with expenditure performance in comparison to the annual estimates usually being higher in the second half of the year. For comparison, the CFP expenditures as of July 2018 amount to BGN 20,532.5 million. Compared to the same period of the previous year, the nominal increase is mainly due to the higher amount of staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018, the pension indexation in July 2019 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), etc. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 31 July 2019, amounts to BGN 811.9 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 statistical data and the Information Bulletin on the Execution of the State Budget and the key Consolidated Fiscal Programme indicators based on the monthly data on cash execution of first-level spending units as of July 2019 will be published on the website of the Ministry of Finance at the end of August 2019.   [1] Estimates to the Law amending the 2019 State Budget of the Republic of Bulgaria Law (promulgated in the State Gazette, issue 60 of 2019, effective as from 30.07.2019).http://www.minfin.bg/en/news/10753http://www.minfin.bg/en/news/10753Wed, 31 Jul 2019 16:54:00 +0300Based on the monthly reports from first-level spending units, the Consolidated Fiscal Programme (CFP) balance on a cash basis as of end-June 2019 is positive, amounting to BGN 3.225,0 million, or 2.8% of the projected GDP, and is formed by an excess of revenues over expenditures of BGN 3,108.0 million under the national budget and of BGN 116.9 million under EU funds. The CFP revenues and grants as of June 2019 stand at BGN 22,285.6 million, or 50.8% of the annual estimates. Compared to the same period of the previous year, tax and non-tax revenues have risen by BGN 2,622.4 million (14.2%), while grant proceeds (mostly EU programme and fund grants) – have risen by BGN 453.0 million. As of the first six months of the year, the performance of revenues complies with the plan for the period and with the tax calendar specifics on the basis of which a considerable part of the annual proceeds under some taxes (corporate tax, PIT, etc.) is concentrated in the first half of the year. This is the reason why revenues in this period traditionally exceed 50 per cent of the annual plan. Tax proceeds, including revenues from social security contributions, total BGN 17,686.3 million, which accounts for 51.2% of the tax revenues planned for the year. Direct tax revenues amount to BGN 3,333.1 million, or 50.8% of those planned for the year. Indirect tax revenues amount to BGN 8,533.9 million, which accounts for 51.9% of the annual estimates. VAT proceeds amount to BGN 5,549.0 million, or 51.2% of those planned. The excise duty revenues amount to BGN 2,849.0 million, or 53.4% of the annual estimates. Customs duty proceeds amount to BGN 114.8 million, or 48.4% of the annual estimates. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amount to BGN 708.1 million, or 60.5% of the annual estimates. Revenues from social security and health insurance contributions are BGN 5,111.2 million, which accounts for 49.2% of the estimates for the year. Compared to the same period of the previous year, the revenues from social security contributions have risen by 11.5 per cent in nominal terms. Non-tax revenues amount to BGN 3,448.2 million, or 52.0% of the annual estimates. It should be noted that a baseline effect appears in the non-tax revenue part relating to the revenues under the Electricity System Security Fund due to the amendments to the Energy Law in force as from 1 July 2018 which have changed the mechanism for collection of revenues under the Fund’s budget. The revenues under the Fund’s budget for the first half of 2019 are therefore higher than the proceeds for the same period of 2018. Grant proceeds amount to BGN 1,151.1 million. CFP expenditures, including the contribution of the Republic of Bulgaria to the EU budget, amount to BGN 19,060.7 million as of June 2019, which accounts for 42.9% of the annual estimates[1]. It is evident that the absorption of expenditures is behind the revenue performance, which is also the reason for the excess of revenues over expenditures for the period. The planned pension indexation, which is set in the annual estimates, will take place in the second half of the year. In addition to that a majority of the capital expenditures planned for the year will be made in the second half of the year due to the construction season and some other factors. Compared to the same period of the previous year, the CFP expenditures grow by 8.9 per cent in nominal terms, which is mainly due to the higher amount of staff costs (a 10% increase in the wage bill for the public sector and the next step of increasing the remunerations in the education sector), the higher social and health insurance payments (a baseline effect from the pension increase in July 2018 and an increase in the health insurance payments set out in the 2019 NHIF Budget Law), an increase in subsidy expenditures, etc.   Non-interest expenditures amount to BGN 17,930.0 million, which accounts for 42.4% of the annual estimates. Non-interest current expenditures as of June 2019 amount to BGN 16,416.7 million, capital expenditures (including net increment of state reserve) amount to BGN 1,499.7 million. The current and capital transfers to other countries amount to BGN 13.7 million. Interest payments amount to BGN 413.1 million, or 61.7% of those planned for 2019. The part of Bulgaria’s contribution to the EU budget, as paid from the central budget as of 30.06.2019, amounts to BGN 717.5 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 as of 30 June 2019 is BGN 11.7 billion, including BGN 11.3 billion of fiscal reserve deposits in the BNB and in banks and BGN 0.4 billion of receivables under the EU Funds for certified expenditures, advance payments, etc. The Consolidated Fiscal Programme implementation data as of 30 June 2019 are published on the website of the Ministry of Finance, in Statistics section. The statistics is accompanied by an Information Bulletin on the Execution of the State Budget and the Main Indicators of the Consolidated Fiscal Programme, which represents a short analysis of the performance of the key budget parameters on a consolidated level and by constituent budgets.   [1] The paper uses data under the 2019 State Budget Law estimate before the budget revision in July 2019 because the Law amending the 2019 State Budget of Republic of Bulgaria Law is approved after the reporting period has ended.http://www.minfin.bg/en/news/10750http://www.minfin.bg/en/news/10750Wed, 31 Jul 2019 12:41:00 +0300Central government debt[1] stands at EUR 11,691.4 million as at end-June 2019. Domestic debt amounts to EUR 2,661.5 million and external debt – to EUR 9,029.9 million. Compared to the previous month, the debt has increased by EUR 126.2 million due to the government securities issued on the domestic market. At the end of the reporting period the central government debt-to-gross domestic product (GDP) ratio[2] is 19.8%, with the share of domestic debt being 4.5% and of external debt – 15.3% of GDP. In the central government debt structure, at the end of the period domestic debt amounts to 22.8%, and external debt – to 77.2%. As of 30 June 2019, central government guaranteed debt amounts to EUR 76.5 million. Domestic guarantees amount to EUR 34.0 million and external guarantees – to EUR 42.4 million. The central government guaranteed debt/GDP ratio is 0.1%. According to the official register of government and government guaranteed debt kept by the Ministry of Finance on the grounds of Article 38(1) of the Government Debt Law, at end-June 2019 the government debt reaches EUR 10,889.1 million, or 18.4% of GDP. Domestic debt amounts to EUR 2,459.5 million and external debt – to EUR 8,429.6 million. Government guaranteed debt amounts to EUR 914.5 million in June 2019. Domestic guarantees amount to EUR 34.0 million, with the government guaranteed debt-to-GDP ratio being 1.5%. The Bulletin can be found in the Statistics Section/Central Government Debt and Guarantees Monthly Bulletin.   Note: In accordance with Article 36(3) of the Public Finance Law /in force as from 01.01.2014 SG, issue No 15 of 15.02.2013, amended SG, issue No 95 of 8.12.2015, amended and supplemented SG, issue No 43 of 7.06.2016/, starting from June 2016, the Ministry of Finance publishes a Central Government Debt and Guarantees monthly bulletin. Information about the amount, structure and dynamics of government and government guaranteed debt/assumed under the procedure of the Government Debt Law/, as published in the Government Debt bulletin until May 2016, is included in the attachment on page 12 of the new edition.   [1] Central government debt is the debt of the central government pursuant to Council Regulation (EC) No 479/2009 of 25/05/2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community. You can find a list of the units included in the Central Government sub-sector in addition to government bodies and institutions as per the European System of National and Regional Accounts in the Community (ESA 2010) and the Eurostat Manual on Government Debt and Deficit HERE   [2]Forecast GDP data as per the updated spring forecast of the Ministry of Finance for 2019http://www.minfin.bg/en/news/10746http://www.minfin.bg/en/news/10746Mon, 29 Jul 2019 15:03:00 +0300On 29 July 2019 the Ministry of Finance reopened an issue of 10.5-year BGN-denominated government securities (GS) placed on 21 June 2019 and maturing on 21 December 2029. The issue is a reference one in respect of the harmonised long-term interest rate to evaluate convergence level, which is one of the Maastricht criteria. GS of an aggregate nominal value of BGN 200 million were offered successfully at the auction at a weighted average yield of 0.32%. The yield reported is a record low at the primary market for this maturity segment. The total subscribed amount reached BGN 305.75 million, which corresponds to a bid-to-cover ratio of 1.53. The spread reported to the analogous German Bunds is 73 basis points. The participants were highly interested, with the biggest amount of GS acquired by banks – 73%, followed by insurance companies with 18%, pension and guarantee funds with 8% and other investors with 1%.http://www.minfin.bg/en/news/10744http://www.minfin.bg/en/news/10744Mon, 29 Jul 2019 14:25:00 +0300The June 2019 issue of the Monthly Report on Bulgarian Economy was published. It assesses the short-term dynamics of main economic indicators. The entire document can be downloaded here.