BULGARIA'S executive budget revenue in 2002 exceeded early projections by 285 million leva, while the tax revenue target was met.
This was announced by Finance Minister Milen Velchev last Wednesday, called to report on the implementation of the annual consolidated fiscal programme.
The 2002 consolidated budget deficit was 232 million leva, equivalent to 0.7 per cent of GDP. This deficit was 25 million leva lower than projected.
Over-performance on fiscal plans was most significant in tariff revenue (88.4 per cent), profit tax revenue (20.4 per cent), and non-tax revenue (17.5 per cent).
Larger revenue allowed extra spending amounting to 621.8 million leva. It included 217 million leva in settlement of overdue payments to municipalities, by which the Finance Ministry fulfilled the programme it had signed with municipal authorities. Another 100 million leva was allocated to repay hospital debts, and an equal amount was used for Christmas bonuses for wages and pensions.
At 4.2 per cent, annual economic growth in Bulgaria remained among the highest internationally, Velchev said.
Higher-than-projected non-tax revenue had offset the decline in budgetary input resulting from tax cuts and low revenue from social security contributions over the year, he said. Poor social security compliance had been a serious setback affecting the national budget in recent years. A significant improvement was expected after the establishment of a National Revenue Agency and the introduction of compulsory registration of employment contracts.
Aggregate budgetary revenue is equivalent to 38.4 per cent of GDP, compared to a projected 37.5 per cent. The percentage of tax revenue to the country's GDP, 29.5 per cent, is also higher than the target, 29.2 per cent.
Revenue from personal income tax remained at the 2001 level. However, considering the 2002 tax cut by 16 percentage points, personal income tax revenue actually increased by 122 million leva in relative terms. The situation with profit tax revenue is similar: despite the 5-point tax cut, the absolute volume remained unchanged from 2001, which means that effective tax administration has resulted in a 75 million leva over-performance in profit tax revenue, said Deputy Finance Minister Gati al-Jeburi.
Deputy Finance Minister Kiril Ananiev said the average wage in 2002 had increased by 4.2 per cent in real terms, compared to 2001.
The State Receivables Agency collected 103 million leva, up from 57 million leva in 2001.
The National Customs Agency collected more than 2.7 billion leva revenues in 2002, 222.38 million leva more than in 2001.
Velchev said the agency had managed to exceed its 2.7 billion leva revenue target, set by the budget, even though imports had not changed in physical terms and exports had decreased, because of weakening dollar strength.
In December alone, customs duties, value added tax, fines, pecuniary penalties and interest added up to 263.74 million leva, marking the second break through of the 250 million leva psychological barrier since October 2002.
"I expect a substantial increase in revenue from the present level at the end of the three-year operation of Crown Agents," Velchev said.
In 2002 Bulgarian Customs foiled 39 drug smuggling attempts and seized 725 kg of drugs, including 424 kg of heroin. A record 230 kg drug haul was made at the Kapitan Andreevo Checkpoint (on the border with Turkey) in July, the largest ever consignment to be seized by Bulgarian Customs.
The World Customs Organisation ranked Bulgarian Customs first in the number of heroin detections along the "Balkan Route" in 2002, he said.
This was announced by Finance Minister Milen Velchev last Wednesday, called to report on the implementation of the annual consolidated fiscal programme.
The 2002 consolidated budget deficit was 232 million leva, equivalent to 0.7 per cent of GDP. This deficit was 25 million leva lower than projected.
Over-performance on fiscal plans was most significant in tariff revenue (88.4 per cent), profit tax revenue (20.4 per cent), and non-tax revenue (17.5 per cent).
Larger revenue allowed extra spending amounting to 621.8 million leva. It included 217 million leva in settlement of overdue payments to municipalities, by which the Finance Ministry fulfilled the programme it had signed with municipal authorities. Another 100 million leva was allocated to repay hospital debts, and an equal amount was used for Christmas bonuses for wages and pensions.
At 4.2 per cent, annual economic growth in Bulgaria remained among the highest internationally, Velchev said.
Higher-than-projected non-tax revenue had offset the decline in budgetary input resulting from tax cuts and low revenue from social security contributions over the year, he said. Poor social security compliance had been a serious setback affecting the national budget in recent years. A significant improvement was expected after the establishment of a National Revenue Agency and the introduction of compulsory registration of employment contracts.
Aggregate budgetary revenue is equivalent to 38.4 per cent of GDP, compared to a projected 37.5 per cent. The percentage of tax revenue to the country's GDP, 29.5 per cent, is also higher than the target, 29.2 per cent.
Revenue from personal income tax remained at the 2001 level. However, considering the 2002 tax cut by 16 percentage points, personal income tax revenue actually increased by 122 million leva in relative terms. The situation with profit tax revenue is similar: despite the 5-point tax cut, the absolute volume remained unchanged from 2001, which means that effective tax administration has resulted in a 75 million leva over-performance in profit tax revenue, said Deputy Finance Minister Gati al-Jeburi.
Deputy Finance Minister Kiril Ananiev said the average wage in 2002 had increased by 4.2 per cent in real terms, compared to 2001.
The State Receivables Agency collected 103 million leva, up from 57 million leva in 2001.
The National Customs Agency collected more than 2.7 billion leva revenues in 2002, 222.38 million leva more than in 2001.
Velchev said the agency had managed to exceed its 2.7 billion leva revenue target, set by the budget, even though imports had not changed in physical terms and exports had decreased, because of weakening dollar strength.
In December alone, customs duties, value added tax, fines, pecuniary penalties and interest added up to 263.74 million leva, marking the second break through of the 250 million leva psychological barrier since October 2002.
"I expect a substantial increase in revenue from the present level at the end of the three-year operation of Crown Agents," Velchev said.
In 2002 Bulgarian Customs foiled 39 drug smuggling attempts and seized 725 kg of drugs, including 424 kg of heroin. A record 230 kg drug haul was made at the Kapitan Andreevo Checkpoint (on the border with Turkey) in July, the largest ever consignment to be seized by Bulgarian Customs.
The World Customs Organisation ranked Bulgarian Customs first in the number of heroin detections along the "Balkan Route" in 2002, he said.
