Budget deficit shrinks by BGN 510 mln to 1% of GDP

Bulgaria’s budget deficit shrank by BGN 510.4 mln to BGN 720.5 mln and stood at 1% of GDP at the end of July, 2011, compared to the same month of last year, Finance Ministry data on the budget implementation showed.
The gap in the Treasury was formed by a deficit of BGN 450.6 mln in the national budget and a BGN 270 mln deficit of EU funds. In July alone, the budget deficit amounted to BGN 70.8 mln, compared to a surplus of BGN 284.5 mln in July 2010. Last year, however, the surplus was formed by higher revenues from EU assistance funds, the Finance Ministry specified. For the first seven months of 2010, the surplus of EU funds stood at BGN 70.8 mln, compared to a deficit of BGN 270 mln in January-July 2011. The fiscal reserve fell again below BGN 5 bn in July, having decreased by BGN 300 mln to BGN 4.9 bn in a single month, Finance Ministry data showed.

Revenues into the Treasury increased by almost BGN 605 mln on an annual basis, reaching BGN 14.12 bn (53.9% of the estimates). The main reason for this, according to the Finance Ministry, were the higher revenues from indirect taxes, which grew by BGN 664.8 mln or 13.5%, including an increase of BGN 373.9 mln in proceeds from VAT and an increase of BGN 276.4 mln in proceeds from excise duties.

Revenues from taxes, including proceeds from social security contributions, totalled BGN 11.52 bn or 81.6% of the aggregate revenues. In January-July, 2011, revenues from VAT totalled BGN 3.45 bn and these from excise duties amounted to BGN 2.05 bn. For the same period, Finance Ministry experts reported proceeds of BGN 68.1 mln from customs duties, BGN 3.7 mln up from January-July, 2010. Revenues from social security and health contributions stood at BGN 3.12 bn or 54.5% of the amount planned for the entire 2011. The Government’s expenditures for the first seven months of the year totalled BGN 14.84 bn or 52.7% of the estimates. By the end of June, Bulgaria had paid BGN 422,2 mln of its due instalment to the common budget of the EU.

If budget revenues and expenditures continue at the same speed, Bulgaria will succeed in implementing the targets set for 2011. In 2010, the budget deficit in our country stood at 3.2% of GDP. For 2011, Finance Minister Simeon Djankov set as a target a budget deficit of below 2.5% of GDP, way below the threshold imposed in the EU. According to the fiscal parameters, the gap in the budget by the end of 2011 is estimated at BGN 2.16 bn. The target for 2012 will be even more restrictive.

Прочети цялата новина

Свързани новини: