/ world today news/ In the last month of the year, the treasury plans to spend a record amount of BGN 5 billion in recent years. This is almost twice as much as compared to the expenses for December 2015 and BGN 2 billion more compared to those paid this year November BGN 3 billion
However, there is a possibility that the expenditure will not be fully incurred and the deficit in the treasury for 2015 will turn out to be smaller than expected. This is shown by the preliminary data of the Ministry of Finance on the implementation of the budget for November. There are no detailed data for the month – for now, only the statistics for October are ready, although the deputies are expected to vote on an update of the budget for 2015, writes Sega.
According to the currently available data, the expenses of the general budget at the end of November, including the budgets of the insurance funds, municipalities and European funds, amount to BGN 29.5 billion. At the same time, according to the updated program for 2015, the expenses may reach BGN 34.52 billion Expenditures were increased by BGN 1.7 billion compared to initial expectations, the main reason being the higher sums for construction in addition to the European funds.
The Ministry of Finance has already insured that these costs may not be fulfilled, including the planned payments on the European funds. The detailed data as of October show that the implementation of the estimates will be extremely difficult. For 2015, capital expenditures are planned in the amount of BGN 6.275 billion. From the beginning of the year to October, the reported construction costs are BGN 4.15 billion. BGN 2.1 billion must be paid in two months.
If these expenditures are not made and the cabinet is not tempted at all costs to redirect the planned amounts for other spending, the deficit under the consolidated fiscal program may turn out to be lower than planned. According to the 2015 budget update submitted to the parliament, the deficit under the consolidated program is expected to increase from 3 to 3.3% of GDP.
Finance Minister Vladislav Goranov explained that this is the most extreme forecast and the minus may be smaller. According to preliminary data for November, the deficit amounted to BGN 457 million, with an assumed annual deficit under the consolidated program of BGN 2.87 billion. These data show that a deficit of BGN 2.4 billion will accumulate in the last month of the year. BGN, the publication writes.
It is clear from the data for October that the elections had a heavy impact on municipal finances. For October, the budgets of the municipalities have a deficit of BGN 38.4 million. For comparison, in October 2014 the balance of the municipal budgets was a surplus of BGN 175.6 million, in 2013 the surplus was BGN 229, BGN 1 million
Higher wage costs amid supposedly cut budgets also contributed to the deficit. By the end of October, 103 million more were spent on salaries and insurance under the municipal budgets than in October 2014. For October, the treasury had a small surplus of BGN 63.9 million.
The contribution of the European funds to this balance is negative – a deficit of BGN 319.5 million, but the national budget has a surplus of BGN 383.4 million, which it managed to compensate for, the publication states.
The surplus in the national budget as of October was accumulated thanks to a surplus in the budgets of universities, BAS and public media – BGN 273.2 million, and a surplus in the budgets of social security funds of BGN 167.8 million. The size of the fiscal reserve as of the end of October is BGN 10.2 billion, including BGN 500 million in future receivables from the EU.
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