Bulgaria's Finance Ministry and the International Monetary Fund (IMF) budget income predictions in 2007 conflicted, Darik Radio reported.

The Finance Ministry expected a 360 million leva higher budget income than the IMF.

The ministry also expected VAT-taxation losses of 450 million leva. Nearly 350 million leva from the negative balance would result from taxation changes. The other 100 million leva would be caused by VAT fraud, Bulgaria's Deputy Finance Minister Georgi Kadiev  said.

IMF expected that the losses due to VAT fraud would be higher.

IMF predicted lower income from the corporate tax than the Finance Ministry, Kadiev said as quoted by Darik.

Kadiev said that the budget's only problem was the great difference of 10 to 14 per cent between company and individual income taxation.