Bulgaria’s End-November Budget Gap Shrinks to 0.5%

Bulgaria’s ran a consolidated budget deficit of BGN 406.4 M equivalent to 0.5% of the projected 2015 GDP at the end of November, the Finance Ministry said on Wednesday.

Compared with end-November 2014, the budget gap has improved by 1.4 percentage points. The consolidated budget deficit at the end of November last year was BGN 1.6 B, which was equivalent to 1.9% of GDP.

Consolitaded budget revenues and grants totalled BGN 29 B or 91.9% of the revised annual plan.  

Compared with the end of November 2014, revenues and grants have increased by BGN 2.34 B or 8.7%. Tax revenues have grown by BGN 1.49 B, or 7.1%, non-tax revenues - by BGN 218 M, or 6.8%, and grant proceeds (mainly EU funds) - by BGN 632.6 M, or 25.2%.

Revenues from direct taxes have increased by 5.9% on the year, reaching nearly 89% of the 2015 plan, mainly due to increased proceeds from personal income tax and corporate tax, the Finance Ministry said in a statement.

Revenues from indirect taxes have also increased, reaching 90% of the plan for the year, with VAT proceeds up 5.1%, excise duty revenue nearly 11% higher and proceeds from customs duty up 3.1%.

At end-November 2015, tax proceeds, including revenues from social security contributions, totalled BGN 22 B, or 91% of the 2015 plan.

Consolidated budget spending, including Bulgaria’s contribution to the EU budget, totalled BGN 29.48 B as of end-November 2015, or 85.4% of the projected total for the year. Compared with end-November 2014, budget spending has increased by BGN 1.14 B, or 4.0%.

In structural terms, growth has been registered mostly in capital expenditure, while non-interest current expenditures, in nominal terms, have remained close to the levels reported at end-November 2014, the Finance Ministry said.

The estimates of the Finance Ministry point to a deficit of around 2.5-2.6 percent of GDP for 2015, or 0.7-0.8 percentage points less than projected in the revised budget plan for the year, Finance Minister Vladislav Goranov said last week.