Bulgaria posts budget surplus of 1.3% of GDP in January-April

By bne IntelliNews June 1, 2015

Bulgaria’s consolidated budget showed a surplus of BGN1.07bn (€545mn) in January-April, reversing a deficit of BGN864.5mn in the same period of 2014, the finance ministry said. The four-month surplus is equal to 1.3% of the projected 2015 GDP.

The government targets to reduce this year’s budget deficit to 3% of GDP from 3.7% in 2014.

Budget revenues and grants increased 19.8% y/y to BGN11.3bn in January-April, expenditures edged down 0.1% y/y to BGN9.9bn, and the contribution to the EU budget declined by 10.8% y/y to BGN376.1mn.

Grants jumped 2.6 times y/y to BGN1.5bn due to EU grants representing refunded expenditures from the previous year, the ministry said. Tax revenues climbed 10.8% y/y to BGN8.32bn. The strongest growth was registered in indirect taxes, followed by revenues from social and health insurance contributions.

On the expenditure side, the highest y/y increases were reported for interests (+31.7% to BGN272.1mn) and capital expenditure and net state reserve gain (+7% to BGN1.14bn).

The ministry also announced preliminary data indicating a budget surplus of BGN1.15bn for January-May, the biggest five-month surplus since 2008.

Consolidated budget, BGNmn      
  Jan-Apr'14 Jan-Apr'15 % y/y
Revenue and grants 9,453.8 11,330.0 19.8%
Tax revenue 7,510.3 8,319.8 10.8%
Nontax revenue 1,360.6 1,507.1 10.8%
Grants 582.8 1,503.1 157.9%
Expenditure 9,896.6 9,887.2 -0.1%
Wages and Salaries  1,482.4 1,489.9 0.5%
Social and health insurance contributions  457.1 458.1 0.2%
Maintenance  1,446.7 1,371.8 -5.2%
Interests 206.5 272.1 31.7%
Social expenditure, scholarships  4,658.4 4,623.2 -0.8%
Subsidies  578.9 531.5 -8.2%
Capital expenditure and net state reserve gain 1,066.5 1,140.7 7.0%
Contribution to the EU budget 421.7 376.1 -10.8%
BUDGET BALANCE -864.5 1,066.6 -
Source: Ministry of finance      

Related Articles

Bulgarian PM expects country to join Eurozone waiting room within a year

Bulgarian Prime Minister Boyko Borissov said on April 26 he expects his country to join the Eurozone waiting room — the European Exchange Rate Mechanism (ERM2) — within a year.  Bulgaria, ... more

Romania, Bulgaria seek China’s support for third Danube bridge

The third bridge over Danube between Romania and Bulgaria will be part of a package that four Balkan countries — Romania, Bulgaria, Serbia and Greece — will offer China for funding, the prime ... more

Bulgarian government gives up plan to join CEZ asset sale deal

Bulgaria’s government does not intend to participate in the deal to sell assets of Czech energy company CEZ, Finance Minister ... more