Bulgaria's Budget Sinks Deeper in May, Fiscal Reserve Finally Up

Bulgaria's Budget Sinks Deeper in May, Fiscal Reserve Finally Up

Bulgaria's state budget registered a monthly deficit of BGN 45 M in May 2011, according to latest data of the Finance Ministry.

The new monthly deficit comes after in April the Bulgarian budget enjoyed a surplus of BGN 190 M, which, however, was due to the annual contribution of the Bulgarian National Bank to it.

Thus, in the first four months of 2011, Bulgaria's Consolidated Fiscal Program (including the the national budget and the balance of foreign aid such as EU funds) registered a deficit of BGN 597.5 M (0.8% of the projected 2011 GDP) on cash basis, including a deficit of BGN 450.6 M of the national budget, and a deficit in EU transactions of BGN 146.9 M.

In spite of the negative result, however, it is still a massive year-on-year improvement, as in January-May 2010 Bulgaria had a deficit of BGN 1.36 B (1.9% of the 2010 GDP), an improvement of BGN 762.5 M (1.1 percentage points) on cash basis.

Bulgaria's state revenues and foreign aid (i.e. EU funding) under the Consolidated Fiscal Program at the end of May 2011 amounted to BGN 9.998 B, or 38.1% of the planned state income for 2011.

Compared with the first five monts of 2010, Bulgaria's state revenues are up by 6.8%, or BGN 640 M.

According to the Finance Ministry data, this is primarily due to the rising income from indirect taxes, which has grown by BGN 580.5 M, or 18.1%, as well as to the rising income from social security and health insurance payments. The state revenues from direct and other taxes have also increased slightly year-on-year.

Bulgaria's total tax revenues in the first five months of 2011 amounted to BGN 8.16 B, or 81.6% of all revenues.

Income from direct taxes reached BGN 1.767 B, or 46.6% of the annual projection. Income from indirect taxes amounted to BGN 3.787 B, or 36.4% of the expected 2011 amount. (Source: Sofia News Agency)

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