The money for defence from budget 2007 might lead to disagreements within the ruling coalition, Novinar newspaper reported.

Funds for army modernisation and for Bulgarian military missions abroad are insufficient. National Movement Simeon II (NMSII) representative Milen Velchev said that the amount should increase. Otherwise Bulgaria would fail meeting NATO requirements, said he.

One manner in which the problem could be solved is the allocation of some funds from the 2006 budget surplus to the defence budget. The funds would be used for armament and for Bulgaria’s missions abroad.

Finance Minister Plamen Oresharski said that budget 2007 included many fiscal risks. Gathering indirect taxation featured among the problems, said Oresharski. Bulgaria’s contribution to the common EU budget was also a problematic item, said he.

The average monthly salary of Bulgarians upon EU entry would be 397 leva. Starting July 1 2007 wages would increase by 10 per cent. Real income would increase by seven or eight per cent because of inflation, said Oresharski.