Bulgaria capitals

Bulgaria expects budget surplus of 0.4% of GDP by end of November

SOFIA, Nov. 30 (Reuters) – Bulgaria expects a budget surplus of 570 million levs ($ 328.72 million) in the first 11 months of the year, or 0.4% of economic output , as the economy recovers and tax collection improves, the finance ministry said on Tuesday.

The Balkan country is targeting a budget deficit of 3.6% of GDP this year due to measures to cushion the impact of the coronavirus after ending 2020 with a deficit of 4%. The Ministry of Finance expects economic growth of 4% this year.

The ministry expects spending to increase dramatically in the last month of the year due to traditionally higher capital spending and funds needed to tackle the coronavirus pandemic.

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In the first 10 months of 2021, the country recorded a budget surplus of 727 million levs, or 0.6% of the expected economic output for the year, the ministry said in a statement.

The Ministry of Finance predicted that government revenue would have increased by 8.1 billion levs to 47.8 billion levs at the end of November compared to a year ago, mainly due to the increase in payments of ‘taxes.

He predicted that spending would have jumped to 47.2 billion levs, from 39.9 billion levs on an annual basis through November due to coronavirus-related spending to support the health system, struggling businesses and bonuses for retirees.

Tax reserves, held under a monetary regime that pegs the lev to the euro, stood at 11 billion lev at the end of October, according to the data.

($ 1 = 1.7340 leva)

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Reporting by Tsvetelia Tsolova; Editing by David Gregorio

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