Bulgaria’s state budget income was nearly 10.5 billion leva until the end of August 2007.

The income was an 18.3 per cent increase compared to end of August 2006, a Finance Ministery report said.

Current tax policy, the decrease of direct taxes and legalisation for most of the grey economy resulted in the increase, according to the report.

In his report Finance Minister Plamen Oresharski said that Bulgaria’s economy showed stable development and growth during the first half of 2007.

GDP raised by 6.4 per cent over the period, the report said as quoted by Focus news agency.

Income from taxes exceeded nine billion leva by the end August 2007, an increase of 207 per cent year-on-year.