Budget surplus in Bulgaria is to reach 3.5 per cent in 2006, Finance Minister Plamen Oresharski said.

The surplus exceeded experts' predictions of three per cent, Oresharski said. Next year's budget surplus is planned to reach two per cent.

Bulgaria would use the budget surplus to pay its short-term debts, Focus news agency said.

Oresharski also said that 1.5 per cent would be the country's contribution to the common EU budget, once Bulgaria became union member.

Inflation in 2006 is expected to reach 6.9 per cent. Recent analyses confirmed inflation of 4.5 per cent but the percentage usually increased during the final months of the year, Oresharski said.

EU accession would not affect seriously inflation or prices in Bulgaria, said Oresharski. The prices of a number of goods would decrease, said he.