The Bulgarian budget deficit swells to EUR 700 million

The Bulgarian budget deficit reached EUR 700 million, according to preliminary data by the country’s Ministry of Finance. This means that in the month of October alone, the state spent over EUR 300 million more than it managed to collect, although the ministry did not specify the reasons behind this.

The budget gap is still far from the EUR 2.3 billion stipulated in the Budget Act. However, the Ministry of Finance expects that in the last two months of the year, this number will be reached and thus

the budget balance will reach the planned deficit of 2.5% of the GDP".

This means that in the remaining two months of the year, as per tradition, the most significant state spending will take place. It is expected that either this month or next, the Bulgarian government will take out a new debt on the international markets, with the aim to cover the expenses, which can’t be met by the revenues.

Total revenues, as of October, reached EUR 26.7 billion. Their implementation is close to 77% of what was set in the budget plan. According to estimates of the Bulgarian finance ministry, tax revenues grew by 11.6% and are EUR 2.2 billion above those for the same period last year. However, the receipts from EU funds are EUR 0.6 billion less, using the same comparison.

Government expenditures as of October reached EUR 27.4 billion - about 9% higher compared to the same period last year. That change is mainly due to pension payments, which provide an increasing weight on the state budget.

According to estimates, the implementation of expenses by the end of October reached 74%, slightly lagging behind revenues.

Bulgaria's contribution to the EU budget, paid at the end of October from the main budget, amounts to EUR 0.7 billion, which is in compliance with the current legislation regarding EU's own resources.

Translated by Tzvetozar Vincent Iolov