Bulgaria Swings to Budget Surplus of 0.3% of GDP at End-March

Bulgaria’s consolidated budget showed a surplus of 257.1 million levs at the end of March, equivalent to 0.3 % of the GDP projected for 2015, the Finance Ministry said on Thursday.

This compared with a consolidated budget deficit of 874 million levs at the end of the first quarter of last year.

“Compared to end-March 2014, the budget position has improved by 1.4 % of GDP,” the Finance Ministry said in a statement.

The budget balance figure at the end of March 2015 is the first surplus recorded in the first quarter of the year since 2009. It comprised a surplus of 156.2 million levs under the national budget and a surplus of 100.9 million levs under EU funds.

“The higher revenues continue to be the main factor for the improvement of the budget balance, while expenditures develop as provided for in the fiscal framework. The rate of revenue growth significantly outpaces the rate of expenditure growth which results in the reported budget balance improvement,” according to the statement.

Consolidated revenues and grants totalled 7.8 billion levs, or 25.7 % of the 2015 plan, at the end of March. Compared to the same period of 2014 revenues and grants have increased by 1.2 billion levs, or 18.6 %.

Tax revenues have risen by 14.2% year-on-year in nominal terms, reaching 5.9 billion levs at the end of March, which is 24.7% of the 2015 plan.

“The highest growth is reported in indirect tax revenues, followed by revenues from social security and health insurance contributions,” according to the statement.