A minimum May budget deficit of 60.2 million leva has been reported, compared to a May 2009 deficit of 120.1 million leva, the Finance Ministry said on Thursday.

At end-May the consolidated fiscal programme posted a budget deficit of 1,360 million leva, the sum total of a national budget deficit of 1,122.6 million leva and an EU funds deficit of 237.4 million leva.

Consolidated fiscal programme (CFP) revenues totalled 9,357.8 million leva in MAy, 35.3 per cent of the annual projection.

Total tax revenues (including social insurance contributions) stood at 7,229.4 million leva, 77.3 per cent of the CFP revenues. Direct tax revenues totalled 1,675.3 million leva, 45 per cent of the annual projection. Indirect tax revenues amounted to 3,206.7 million leva, 27.8 per cent of the annual projection.

VAT revenues totalled 1,983.6 million leva, 29.2 per cent of the amount projected in the National Budget Act. Excise duty revenues totalled 1,179 million leva as of May 31, 25.7 per cent of the projected level. Custom duty revenues stood at 44 million leva, 31.9 per cent of the annual projection.

Revenues from other taxes, including property tax among others, totalled 335.7 million leva, 46.6 per cent of the projected level. Social and health insurance contributions amounted to 2,011.7 million leva, 39.2 per cent of the annual projection.

Non-tax revenues and aid totalled 2,128.4 million leva, 39.1 per cent of the annual projection. This is 426.9 million leva down from a year earlier, mostly due to advance payments from the EU funds at the beginning of 2009, which have a one-off effect but are factored in in a comparison with total revenues in the first five months of 2010, the Finance Ministry said. A 354.7-million-lev contribution reflecting the surplus of revenues over expenditures of the Bulgarian National Bank was paid in April, 18.2 per cent over the projection in the National Budget Act.

Consolidated budget expenditures, including Bulgaria's contribution to the EU budget, stood at 10,717.8 million leva, 39.7 per cent of the annual projection. Current non-interest expenditures totalled 9,025.2 million leva, 42.1 per cent of the annual projection; capital expenditures, including the reserve's net growth, amounted to 1,078.1 million leva, 27.4 per cent of the annual projection; and interest payments stood at 285.8 million leva, 49.2 per cent of the annual projection.

Compared with a year earlier, expenditures (including the contribution to the EU budget) increased by 229.2 million leva (2.2 per cent), and non-interest expenditures went up 244.2 million leva. The increase in the consolidated budget expenditures is mostly due to larger social and health insurance disbursements - up 641 million leva on January-May 2009.

Subsidies to the real sector and agricultural producers also grew due to efforts to encourage the economy and improve the environment for Bulgarian businesses. Interest expenditures dropped by 34.5 million leva from May 31, 2009. Capital expenditures were down 339.4 million leva (23.9 per cent) on end-May 2009.

The Bulgarian contribution to the EU budget, disbursed from the central government budget as of May 2010, totalled 328.7 million leva in line with Council Regulation 1150/2000.

The fiscal reserve stood at 6,600 million leva as of April 30.

Source: BTA