Bulgaria’s general budget gap widens to EUR 374 in Feb 2013

By bne IntelliNews April 2, 2013

The general budget posted a deficit of BGN 732mn (EUR 374.3mn) in the first two months of 2013, up by 29.6% y/y, according to preliminary data of the finance ministry. The gap widened to 0.9% of the full-year GDP projection from 0.7% in both January 2013 and February 2012. The deterioration came mostly on the back of 7.4% annual increase of budget expenditure likely related to larger interest payments in the first months of the year.

Budget revenues increased by 14.5% y/y in February alone, supported by rapid growth of tax proceeds. The revenues will continue to grow at a higher rate till April when the deadline for reporting the annual income of companies and individuals expires.

Total expenditures (including the country's contribution to the EU budget) went up by 9.1% y/y in February. They will rise further with the 9.5% pensions increase that came into effect as of April 1. Furthermore, in March the caretaker government decided to cut on administrative expenses and allocate BGN 40.9mn (EUR 21mn), amounting to approximately 0.05% of the projected GDP, to the poor and the unemployed. Although this measure is not going to generate a higher budget deficit, as promised by the ministry, it is likely that certain changes in the budget structure will be observed.

The general government budget ended 2012 with BGN 350mn (EUR 179mn) deficit, representing 0.5% of GDP. Bulgaria will target a 1.3% of the projected full-year GDP budget deficit in 2013, according to 2013 budget law.

Bulgaria's consolidated govt budget, BGN mn Jan-Feb 2013 Jan-Feb 2012 y/y
Revenue and grants 3,827 3,681 4.0%
   Tax revenue 3,248 3,127 3.9%
Expenditure 4,302 4,004 7.4%
   Wages and Salaries  676 622 8.7%
   Social and health insurance contributions  211 162 29.7%
   Maintenance  644 623 3.4%
   Interests 313 257 21.7%
   Social expenditure, scholarships  2,011 1,775 13.3%
   Subsidies  143 238 -39.9%
   Capital expenditure and net state reserve gain 303 326 -7.0%
BG contribution to the EU budget 258 242 6.6%
Budget Balance -732 -565 29.6%
Source: Finance ministry      

Related Articles

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

Bulgarian court orders partial recount of ballots cast in electoral reform referendum

The Supreme Administrative Court (SAC) has ordered a recount of votes cast at 44 polling stations in Bulgaria’s November 6 referendum on electoral reform.  According to the official final ... 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