November 30 (SeeNews) - Bulgaria's finance ministry said on Wednesday it expects the consolidated budget to show a surplus of 3.47 billion levs ($1.9 billion/1.78 billion euro) at the end of November, equivalent to 3.9% of the projected 2016 gross domestic product (GDP).
The forecast compares to 406.4 million levs deficit, or 0.5% of GDP, recorded at the end of November last year, the ministry said in a statement citing preliminary estimates.
Consolidated budget revenue is expected to increase by 2.1 billion levs on the year to reach 31.1 billion levs at end-November, or 94.3% of the full-year plan, underpinned by increased tax and non-tax revenues.
Expenditures under the consolidated 2016 budget is projected to total 27.7 billion levs at end-November, compared to 29.5 billion levs a year ago. The forecast figure represents 79.5% of the full-year expenditure target.
In a separate statement, the ministry said that final figures for the period January-October show a consolidated budget surplus of 3.43 billion levs, equivalent to 3.9% of the projected 2016 GDP. This compared with 63.9 million levs surplus, or 0.1% of GDP, recorded in the same period of 2015.
Consolidated budget revenue rose by 6.6% on the year, reaching 28.3 billion levs in the first ten months of 2016, while expenditure decreased to 24.85 billion levs, compared to 26.5 billion levs last year.
In September, finance minister Vladislav Goranov said that Bulgaria could close 2016 with budget deficit lower than 1% of GDP on the back of improved tax collection and lack of serious pressure on the expenditure side, which could help the government accumulate more funds to repay debt in 2017. Previous estimates pointed to budget deficit equivalent to 2% of GDP.
(1 euro=1.95583 levs)