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State Treasury due to large inflows with almost EUR 750 million surplus

After the first ten months of this year, the state budget amounted to EUR 748.5 million, reaching only EUR 397.5 million in October. Such a surplus is the result of a one-off reimbursement of EU funded funds and inflow of dividends to NLB, the Finance Ministry said today.

"This surplus this year is the result of a one-off reimbursement of EU-funded funds we have already spent in the 2007-2013 financial perspective and higher non-tax revenues due to one-off inflows from NLB dividends," the ministry explained.

In the first ten months, the State Budget revenues reached 8.22 billion euros, 12.3 percent more than in the same period last year.

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GDP growth of 4.8%, inflation is 2%

The country has received EUR 270 million from NLB

The growth in revenues from taxes and revenues from EU funds has contributed to this growth. They grew by almost 100 percent to 555 million euros. Non-tax taxes rose 32.5 percent to 807.3 million euros. In October, the country received EUR 270.6 million of dividends from NLB, which also includes profits from previous years.

NLB earnings are valued as a one-time inflow, which is not a continuous increase in non-tax revenue. In addition, it is necessary to take into account the general government balance. I. super-dividends, in which retained earnings of previous years have to be deducted from total payments for the current year and hence only partially affect the final result of this year, explained the Ministry.

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Tax revenues rose 6.1 percent compared to the same period last year, to 6.79 billion euros from January to October. Value added tax increased by 7.2 percent to 3.09 billion euros. Excise tax revenue was only 1.6 percent less than EUR 1.30 billion.

Budget expenditures in the first ten months amounted to 7.48 billion euros, which is 2.3 percent more than last year. Current expenditures were down by 0.7 percent and amounted to 2.48 billion euros, of which interest expenditures were down by 10.7 percent, amounting to 800.1 million euros.

In October alone, state budget revenues reached 1.07 billion euros, and costs amounted to about 673 million euros.

"By the end of the year, the surplus is expected to be lower than at the end of October, as both the investment activity of the ministries and all other payments in the last months of the year strengthens," the ministry says.

Excess will not significantly affect the balance sheet

The cash flow surplus is estimated at about EUR 500 million, which does not mean a permanent positive balance, as it is the result of two one-time events (retained earnings and cost reimbursements for already incurred costs). It will also not have a significant impact on the state of the general government (according to the ESA methodology), estimated to reach close to 0.5 per cent of GDP surplus by the end of 2018.

Total government revenue in the first ten months reached EUR 15.28 billion, which is 10.1 percent more than last year. Tax revenues rose by 6.6 percent to EUR 13.35 million, and non-tax revenues by 25.7 percent to EUR 1.19 billion. Such growth is the result of the inflow of NLB dividends.

State expenditures amounted to EUR 14.44 billion, which is 5.1 percent more than in the first ten months of last year. Expenditures for salaries and contributions grew by 5.1 percent to EUR 3.44 billion, goods and services expenses by 5.4 percent to EUR 2.06 billion.

The excess of public finances reached 834.6 million euros.

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