Bulgaria's 2013 budget deficit at 1.8% of GDP, below 2% target

By bne IntelliNews February 3, 2014

Bulgaria's consolidated budget deficit stood at BGN 1.45bn (EUR 740.6mn) in 2013, equal to 1.8% of the full-year GDP projection, which is below the 2% target of the government, finance ministry data showed. The lower-than-planned cash-basis deficit resulted from smaller-than-expended expenditures.

Bulgaria's 2013 budget execution, BGN mn Initial plan Amended plan Execution
Revenues and grants 30,589.6 30,382.2 28,981.4
Taxes 23,405.2 22,850.3 22,370.2
Non-tax revenue 3,444.8 3,792.3 3,966.1
Grants 3,739.7 3,739.7 2,645.0
Expenditures (EU contr. incl) 31,689.6 31,975.4 30,429.8
Budget balance -1,100.0 -1,593.4 -1,448.4
% of GDP 1.3 2 1.8
Source: Finance ministry      

Budget revenues in 2013 increased by 5.5% to BGN 28.9bn thanks to the improved economic activity. Proceeds from corporate taxes rose 5.1% to BGN 1.5bn, income tax revenue climbed 2.3% to BGN 2.3bn and VAT revenue (the biggest source of cash to the state's coffers) amounted to BGN 7.4bn - up 3% from the previous year. Proceeds from custom duties surged 24.2% to BGN 146.2mn. 

Nevertheless, the government's actual revenue was BGN 1.4bn short of the BGN 30.4bn target for the year. However, budget expenditures were BGN 1.54 below target, because of which last year's budget gap was smaller-than-expected. 

Expenditures (including Bulgaria's contribution to the EU) rose 9.4% to BGN 30.4bn in 2013 mostly because of higher social welfare spending (due to higher state pension transfers), which increased 7.3% to BGN 12.7bn. Total current spending rose 8.8% to BGN 25.4bn, while capital outlays climbed 11.8% to BGN 4.1bn.

The government of PM Plamen Oresharski (backed by socialist BSP and ethnic Turk MRF) targets 1.8% budget deficit in 2014. The debt-to-GDP ratio is expected to reach 22.1% at year-end, up from an estimated 18.5% at end-2013, as the government plans to borrow BGN 4.4bn in 2014.

Bulgaria's consolidated govt budget, BGN mn 2012 2013 Change, y-y Change, y/y
Revenues and grants 27,469.6 28,981.4 1,511.8 5.5%
Tax revenue 21,523.4 22,370.2 846.9 3.9%
Non-tax revenue 3,578.9 3,966.1 387.2 10.8%
Grants 2,367.2 2,645.0 277.8 11.7%
Expenditures 27,010.5 29,495.7 2,485.2 9.2%
Wages and salaries 4,138.0 4,452.1 314.0 7.6%
Social and healthcare expenditures 1,067.4 1,368.7 301.3 28.2%
Maintenance 4,454.0 4,705.6 251.5 5.6%
Interest expenditures 572.5 688.7 116.2 20.3%
Social expenditure, scholarships 11,878.7 12,750.5 871.8 7.3%
Subsidies 1,232.7 1,429.4 196.7 16.0%
Capital expenditure and net state reserve gain 3,667.1 4,100.7 433.7 11.8%
Contribution to the EU budget 809.3 934.1 124.8 15.4%
Budget balance -350.2 -1,448.4 -1,098.2 313.6%
Source: Finance ministry        

Related Articles

Bulgarian prosecutors file indictment against defence minister

The Sofia city prosecutor’s office filed indictment with Sofia city court against outgoing Defence Minister Nikolay Nenchev over his alleged failure to ensure aviation safety and the ... more

Bulgaria’s former justice minister launches anti-corruption party

Bulgaria’s former Justice Minister Hristo Ivanov will lead the newly formed Yes Bulgaria party as it prepares to compete in the upcoming general election on an anti-corruption platform.  ... more

Belgium’s KBC buys United Bulgarian Bank and Interlease for €610mn

Belgian-based KBC Group said on December 30 that it is acquiring United Bulgarian Bank (UBB) and Bulgarian leasing ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss