Bulgaria’s Budget with 107.6M leva surplus at end-August

Bulgaria’s Finance Ministry reported a consolidated Budget surplus of 107.6 million leva at the end of August, a strong turnaround compared to the same period of last year, when the Budget had a deficit of 731.1 million leva at the end of August 2011.

Budget revenues in January-August rose by 9.6 per cent compared to the first months of last year and reached 17.8 billion leva (61.9 per cent of the amount targeted for the full year).

The strongest contribution to the improved fiscal position came from higher revenue from indirect taxes, the ministry said. Tax revenue alone was 14.3 billion leva for the first eight months of 2012, or 66.2 per cent of the amount targeted for the full year.

The national Budget had an even stronger surplus of 616.9 million leva, offset largely by a European Union funds deficit of 509.3 million leva. Bulgaria has paid 562.2 million leva of its annual contribution to the EU budget already.

The fiscal reserve, which Bulgaria has to maintain under the terms of its currency board that pegs the lev to the euro, was 6.9 billion leva – boosted by the revenue from the sale of five-year bonds worth 950 million euro on July 2, which the country will use pay back debt due in January 2013.

Bulgaria’s debt at the end of August was 6.95 billion euro, including 4.55 billion euro foreign debt, down 108.8 million euro compared to a month earlier. The two reasons for the decrease was a decline in domestic debt and currency exchange rate fluctuations, the ministry said.

(Photo: Sanja Gjenero)



The Sofia Globe staff

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