December 30 (SeeNews) - Bulgaria's full-year 2016 consolidated budget is expected to show a surplus for the first time since 2008, the finance ministry said on Friday.
The consolidated budget surplus is forecast at 1.5 billion levs ($808.4 million/766.6 million euro), equivalent to 1.6% of the projected 2016 gross domestic product (GDP), the ministry said in a statement citing preliminary estimates.
The forecast compares to 2.5 billion levs deficit equivalent to 2.9% of GDP, recorded at the end of last year.
Full-year consolidated budget revenue is expected to increase by 1.7 billion levs compared with 2015 and reach 33.9 billion levs at end-December, or 102.8% of 2016 plan, underpinned by increased tax and non-tax revenues.
Full-year expenditures under the consolidated 2016 budget are expected to total 32.4 billion levs at end-December, compared to 34.7 billion levs a year ago. The forecast figure represents 93.2% of the full-year expenditure target.
In a separate statement, the ministry said that final figures for the period January-November showed a consolidated budget surplus of 3.47 billion levs, equivalent to 3.8% of the projected 2016 GDP. This compared to 406.4 million levs deficit, or 0.5% of GDP, recorded in the same period of 2015.
Consolidated budget revenue rose by 6.9% on the year, reaching 31 billion levs in the first eleven months of 2016, while expenditure decreased to 27.6 billion levs, compared to 29.5 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)