BUDGET DEFICIT SHRINKS BY 38% WITHIN A YEAR - TO BGN 298 MLN

The budget deficit of Bulgaria has shrunk by 38 percent over the first month of the year compared with January 2011, reported the Ministry of Finance. According to the data, the shortage of BGN 297. 8 mln in the state Treasury at the beginning of the year was formed by the national budget deficit at the amount of BGN 209.1 mln. including the deficit in terms of the received European funds amounting to BGN 88. 7 mln. For comparison, the budgetary balance for January 2011 showed a negative value of BGN 477. 3 mln. In practice, this means that the budgetary position of our country for the first month of this year has improved by BGN 179. 5 mln. During the same month of 2010, the Treasury reported a deficit of entire BGN 499. 1 mln, while in January 2009, it registered a financial surplus of BGN 631 mln.

According to the current data of the Finance Ministry, as of January 31, 2011, the fiscal reserve stood at BGN 4 bn or by BGN 1 bn lower than the amount of funds reported at the end of December. In January 2011, the reserve contained BGN 5. 4 bn, while during the same month of 2010, it comprised overall BGN 7.37 bn. Even more drastic difference could be established, if the financial data of January 2012 are compared with those from January 2009. It proved out that over four years the amount of reserve decrease by BGN 4.8 bn. In fact, initially, the reserve contained entire BGN 8. 8 bn.

In fact, the reserve depleted over the payments for servicing of foreign (BGN 0. 2 bn) and the domestic debt (BGN 0. 3 bn), as well as due to the allocated grants to agricultural producers (BGN 0. 2 bn), explained the Office of Simeon Djankov on the occasion of the current data. According to experts, at the end of January, the Paying Agency to State Fund Agriculture transferred payments for a total BGN 743. 2 mln under the Single Payment Scheme per area unit and under the Scheme for the National Additional Payment. In fact, a total of BGN 64. 5 out of these funds were at the expense of the EU and are subject to refunding in a subsequent period. In contrast to previous years, with a view of aiding the agricultural producers, the final deadline for the transfer of these payments was scheduled to be at the maximum earliest point, which as early as January, explained the representatives of Finance Ministry.