Bulgaria with 0.9% Budget Deficit in 2011 H1, Reserve Slightly Up

Bulgaria has completed the first half of 2011 with a budget deficit of 0.9% its GDP, according to latest data from the Finance Ministry.

Thus, in January-June 2011, Bulgaria's deficit on cash basis under the government's Consolidated Fiscal Program amounted to BGN 652.1 M down from BGN 1.514 B in January-June 2010, a decrease by BGN 862.5 M (or 1.3 percentage points) year-on-year.

It is formed by a deficit under the national budget of BGN 455.9 M and a deficit under EU funds of BGN 196.2 M.

In June 2011 alone, Bulgaria registered a monthly budget deficit of BGN 54.6 M. It came after a deficit of BGN 45 M in May, and a surplus of BGN 190 M in April.

In the first half of 2011, Bulgaria's state revenues and grants amounted to BGN 12.04 B, or 45.9 % of the 2011 projection. Compared to the same period of 2010, proceeds report a growth by BGN 851.8 M or 7.6%.

This is mostly due to higher indirect tax revenue, which increased by BGN 638.1 M (15.8 %) year-on-year, the Finance Ministry says.

Revenues from direct taxes and from other taxes under the Corporate Income Tax Law also report some growth compared to the data reported in the same period of 2010, the institution notes.

Bulgaria's state spending in the first half of 2011 under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, as of June 30, 2011, amounted to BGN 12.693 B, or 45.1 % of the planned expenditures for the year. In structural terms, compared to the June 2010, wage bill, social security expenditures and capital expenditures are lower, while health insurance payments are higher.

Bulgaria's fiscal reserve has grown by some BGN 200 M since May, amounting to BGN 5.2 B as of end June.

As of April 30, 2011, Bulgaria's fiscal reserve stood at BGN 4.7 B, a decline of BGN 400 M in just two months, and its lowest point since the pre-crisis years.

Bulgaria's fiscal reserve amounted to BGN 5.1 B as of February 28, 2011, a decline of BGN 300 M.

Bulgaria's fiscal reserve stood at BGN 5.4 B at the end of January compared with BGN 6 B at the end of December 2010.