The budget surplus from January to April 2007 went up 45 per cent to reach 1.3 billion leva.

In case Bulgaria refrained from contributing to the EU budget, the surplus increase was going to reach 70 per cent, Finance Ministry said.

Predictions indicate that the annual budget surplus could reach up to five per cent, IntelliNews reported. Cabinet strategies for the year aim at a two per cent surplus.

If Cabinet manages to implement more restrictive fiscal policies, the surplus could be even higher, of seven to eight per cent.

Tax revenue in April registered growth of 11.5 per cent from January to April. IntelliNews reported that the overall tax and non-tax revenue increased by 12 per cent for the same period in comparison to 9.7 per cent for the first quarter of 2006.