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 |
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