Financial and business news from Bulgaria

The plus budget with BGN 871 million until September, a deficit of 253.4 million is expected for October.

The budget balance as of September 30 is positive with BGN 871.4 million, the Ministry of Finance said. Revenues under the national budget exceed expenditures by BGN 484.9 million and the remaining BGN 386.5 million are under EU funds.
Based on the data from the monthly reports for cash execution of the budgets of the first-level spending units, revenues, grants and donations as of September 2020amount to BGN 32.415 billion, or 73% of the annual estimates. Compared to the same period of the previous year, they decreased by BGN 383.5 million in nominal terms. Tax and non-tax revenues have decreased by BGN 750,3 million (2.4%) and proceeds from grants and donations (mainly grants under EU programmes and funds) have increased by BGN 366.8 million (21.0%) compared to the end of September 2019.

Tax proceeds, including revenues from social security contributions, amount to BGN 25,990 billion, which accounts for 74.4% of the planned tax revenues for the year. The expenditures from the budget as of September 2020amount to BGN 31,544 billion, which is 65.8% of the annual estimates. They are close in size compared to the same period of the previous year, taking into account a reduction mainly in capital expenditure. The fiscal reserve amount as of 30.09.2020 is BGN 13.53 billion.

Based on preliminary data and estimates, the balance under the Consolidated Fiscal Programme on a cash basis as of October 2020 is expected to be positive, amounting to BGN 618 million (0.5% of the projected GDP). On a monthly basis for October, however, a deficit of BGN 253.4 million is expected. During the month higher costs related to socio-economic measures for minimizing the effects of the crisis have been incurred, including payments under measure 60/40, payment of a monthly supplement to pensions in the amount of BGN 50, payments to farmers, as well as other costs under the approved measures, which, together with the traditionally higher costs in the autumn-winter season, is reflected in an ongoing excess of expenditure over revenues for October.