Bulgaria's Budget Balance Turns Positive in Jan-May 2012

Bulgaria's state budget has come to a positive balance for the first five months of 2012, after May became the second month in a row to register monthly budget surplus, the Bulgarian Finance Ministry announced Tuesday.

According to preliminary data, Bulgaria had a positive monthly budget balance in May 2012 amounting to BGN 284.4 M.

Thus, Bulgaria's budget balance for January-May 2012 has already reached a surplus of BGN 67.4 M, after a monthly surplus of BGN 473.8 M in April 2012.

The five-month surplus of BGN 67.4 M results from a national budget surplus of BGN 334.5 M and a EU funds deficit of BGN 267.0 M, the Finance Ministry said.

Compared to the same period of last year, Bulgaria's consolidated financial framework has improved by BGN 665 M (0.8 % of GDP), which is mostly on account of the national budget balance being improved by BGN 802.5 M (1.0 % of GDP), while the EU funds deficit has grown by BGN 137.6 M (0.2 % GDP).

"This improvement in the budget stance against last year is entirely due to the better performance of the revenue side of the budget. There is a nominal revenue growth of 3.3 % related to the increased costs under EU programs, while national budget expenditure contract by BGN 39.9 M (0.04 %)," the Ministry explained.

Bulgaria's fiscal reserve amounts to BGN 5.0 billion as of 31 May 2012.