Finance Ministry Expects 2017 Budget Revenues to Top 21.9 Billion Leva
Thursday, 27 October 2016
The Bulgarian Finance Ministry released on Wednesday the draft for the country's budget for next year and the updated medium-term budget forecast for 2017-2019.
Real GDP is expected to slow down slightly to 2.5 per cent in 2017 before accelerating to 2.7 per cent in 2018-2019 with consumption and investment seen fueling domestic demand.
The Finance Ministry has budgeted a deficit equal to 1.4 per cent of GDP in 2017, 1.0 per cent in 2018 and 0.5 per cent in 2019.
Total budget revenues are projected at 21.9 billion leva, including 19.2 billion in tax revenues. Corporate tax revenue is seen at 1.97 billion leva with personal income tax revenues at 3 billion leva, VAT revenues at 8.8 billion leva and excise duty revenues at 5 billion leva.
Budget spending is projected at 11.3 billion leva next year with net transfers to the budgets of municipalities and institutions at 10.5 billion leva. Transfers to the judiciary will total 900 million leva while Parliament will get 500 million leva. Social security transfers will top 4.7 billion leva with health insurance transfers at 1.16 billion leva.
The total outlays under the consolidated fiscal programme over the medium term would drop from 39.8 per cent of GDP in 2017 to 38.2 per cent of GDP in 2019.
The Finance Ministry said the main goal in the 2017-2019 period will be pursuing a fiscal policy that would raise budget revenues while cutting the share of the informal sector. Low direct tax rates will be maintained with the burden being shifted to indirect taxation.