At the end of October the consolidated fiscal program (CFP) showed a deficit of 1,902.7 million leva resulting from a national budget deficit of 2,001.2 million leva and an EU funding surplus of 98.5 million leva, the Finance Ministry said, based on budget implementation data as of October 31.

Month on month, the October CFP deficit was 384.9 million leva.

In addition to regular expenditures on the National Health Insurance Fund's budget, some 130 million leva were paid to hospitals for activities performed in the previous months, the Finance Ministry said. Larger spending was reported on programs co-financed by the EU Funds.

January-October CFP revenues totaled 19,233.6 million leva, 78.4 per cent of the annual projection.

Total tax revenues, including social insurance contributions, amounted to

15, 186.2 million leva, 79 per cent of all CFP revenues. Direct tax revenues totalled 2,844.7 million leva, 81.8 per cent of the annual projection, and indirect tax revenues stood at 7,708.1 million leva, 78.2 per cent of the annual projection.

VAT revenues stood at 4,721.2 million leva, 80.6 per cent of the updated 2010 budget. Excise duty revenues totalled 2,885.4 million leva as of October 31, 74.0 per cent of the annual projection. At 101.5 million leva customs duty revenues topped the updated annual projection by 10.3 per cent.

Revenues from other taxes (including property tax and other taxes under the Corporate Income Tax Act) stood at 586.7 million leva, 81.4 per cent of annual projections. Social and health insurance contributions added up to 4,046.7 million leva, 78.3 per cent of the annual projection.

Non-tax revenues stood at 2,858.0 million leva, 84.1 per cent of the annual projection. January-October aid totalled 1,189.3 million leva, 61.6 per cent of the planned amount.

CFP expenditures (including Bulgaria's contribution to the EU budget) totalled 21,136.3 million leva, 76.0 per cent of the updated annual projection. Current non-interest payments amounted to 17,749.3 million leva, 83.3 per cent of the planned amount. Capital expenditures totalled 2,334.8 million leva, 61.5 per cent of the updated expenditures for 2010. Interest payments stood at 458.9 per cent, 90.5 per cent of the projected level in the updated 2010 budget.

In nominal terms, CFP expenditures rose by a mere 0.2 per cent from a year earlier. Compared with a year earlier, larger outlays on social and health benefits and subsidies in end-October 2010 were offset by lower spending on maintenance and capital expenditures, the Finance Ministry said.

Social and

health benefits increased from the first ten months of 2009 by 792.5 million leva, of which 485.4 million leva resulted from pension rises and larger spending on welfare benefits. January-October subsidies were up 199.2 million leva on a year earlier, mostly due to larger subsidies under the Rural Development Program co-financed by the European Agricultural Fund for Rural Development.

The portion of Bulgaria's contribution to the common EU budget paid from the central government budget by the end of October is 593.3 million leva.

The fiscal reserve stood at 6,400 million leva as of October 31.

Source: BTA