Official: BGN 5.6 billion is the deficit for 2023

With its decision, the government approved the annual report on the implementation of the state budget of the Republic of Bulgaria for 2023 and the report to it and proposes to the National Assembly to consider and accept it.

The report notes that 2023 ends with a deficit under the consolidated fiscal program (CFP) on a cash basis in the amount of BGN 5,618.1 million. Relative to GDP, this represents 3.1% of GDP. With the reasons for the draft law on the state budget for 2024 (RMS No. 830/24.11.2023) the indicative target for the budget balance under the CFP for 2023 was changed compared to the one set with the reasons for the State Budget for 2023 (RMS No. 459/ 07/05/2023), taking into account the risks that the second tranche of the Recovery and Sustainability Plan will be postponed to 2024. As a result, the indicative amount of the deficit under the CFP for 2023 in the estimates for the year amounts to BGN 5.8 billion, which means that the balance under the CFP for 2023 corresponds to what was set in the program for the year.

The fiscal reserve as of 31.12.2023 is in the amount of BGN 13.4 billion, incl. BGN 10.9 billion deposits of the fiscal reserve in the BNB and banks and BGN 2.5 billion receivables from the funds of the European Union for certified expenses, advances and others.

The received income, benefits and donations under the CFP for 2023 are in the amount of BGN 67,040.8 million (36.5% of GDP compared to 38.6% of GDP for 2022). It should be noted that in the previous year 2022 there were revenues of a one-time extraordinary nature.

The expenses, including the contribution to the EU budget, under the CFP for 2023, amount to BGN 72,658.9 million, which is 98.1% of the annual estimates. CFP spending as a percentage of GDP represents 39.5% of GDP in 2023, with 39.4% of GDP for spending in 2022.

Interest payments amount to BGN 830.8 million (100.9% compared to those planned for 2023), current non-interest expenses amount to BGN 60,712.4 million, capital expenses (including the net increase in the state reserve ) amount to BGN 9,201.3 million and the current and capital transfers abroad amount to BGN 64.5 million.

Bulgaria's contribution to the general budget of the EU amounts to BGN 1,849.9 million (1.0% of GDP), which is in accordance with the legislation in force during the year in the field of the EU's own resources.

With the same decision, the government approved the 2023 Annual Report and Report on the State Fund for Ensuring Sustainability of the State Pension System and the 2023 Annual Report on the State of the State Debt, which are to be submitted to the National Assembly. The total cash resource as of 31.12.2023 on account of the State Fund for Guaranteeing Sustainability of the State Pension System in the Bulgarian National Bank is in the amount of BGN 3,904.4 million. The size of the state debt as of 31.12.2023 is 40,514 .0 million BGN.