The budget deficit grew by BGN 1.2 billion in October – with the same amount by which it increased in September, according to preliminary data from the implementation of the Consolidated Fiscal Program. Thus, the “hole” in the budget already exceeds BGN 4 billion, and if its expansion continues at the same pace during the last two months of the year, there is a danger that the deficit for 2024 will exceed 3%, writes economic.bg.
The hole in the treasury! At least BGN 12 billion is sought.
In order to fulfill its commitment to join the Eurozone, the state must keep the overspending to a maximum of BGN 6.2 billion this year. But traditionally, the biggest expenses of the year are made in the last months. One option is the capital program, i.e. the expenditure on construction and repair of roads, etc., to be fulfilled to a very small extent and it once again becomes a lifeline for poorly planning finance ministers.
If in any of the following months the “step” of BGN 1.2 billion growth is exceeded, the red light under the CFP will become even stronger.
In addition to the regular monthly expenses for staff, maintenance and those in the social sphere (for pensions, benefits and benefits and health insurance payments), the Ministry of Finance cites as the reason for the expenses ahead of the income, as well as the disbursed BGN 200 million state aid under the program “Assistance in supporting the liquidity of farmers to overcome the negative economic impact of Russian aggression against Ukraine” and the program “Aid to support the liquidity of farmers, producers of grain and oil crops, to overcome the negative economic impact of Russian aggression against Ukraine”. Apart from them, another BGN 200 million was given for the delivery of new railway rolling stock for the transport of passengers under the Recovery and Sustainability Plan, and others.
Basic parameters of budget execution
Incomes, benefits and donations under the CFP as of October are expected to be in the amount of BGN 58.1 billion, which is 77.2% of the annual estimates and represents a nominal growth of 8.8% compared to the same period of the previous year.
And in October, the trend observed from the previous months continued for a moderate increase in receipts in the part of tax and social security revenues, and their implementation as of October 2024 is expected to be 81.6% of the annual estimates, compared to 79% for the same period in 2023 d.”, the office of Lyudmila Petkova states.
The costs under the CFP, incl. the contribution of the Republic of Bulgaria to the EU budget as of October 2024 amounts to BGN 62.1 billion, which is 76.2% of the annual estimates. Compared to the previous year, there was an increase mainly in social costs, as a result of higher pensions paid, after the increases that came into force in July 2023 and July 2024, as well as in personnel costs, after the increase in the remuneration of teaching staff and with other administrations.
The part of the contribution of the Republic of Bulgaria to the EU budget, paid at the end of October from the central budget, amounts to BGN 1.3 billion, which is in compliance with the currently effective legislation in the field of the EU’s own resources.
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