Bulgaria's state budget reported a surplus of 2.874 billion leva or five per cent of the gross domestic product for the year, Finance Ministry data for the eight months ending August showed. Public revenues came in at 15.2 billion leva, which represents an increase by 17.4 per cent against the same period in 2006. The largest contributors to the revenue were tax collections. At two billion leva, the item reported a 19.5 per cent year-on-year increase.

During the same period, revenues from personal income tax were up 31.2 per cent on the year where the rate of increase in monthly terms has been accelerating since the turn of the year. The positive trend has primarily been attributable to the higher average pay and the higher employment rates as the year unfolds.

Public spending amounted to 12 billion leva. In August alone, expenditures reported a 9.2 per cent year-on-year increase. In May and July, respectively, the increase was at 6.6 per cent and 8.9 per cent on the year.

The report of the finance ministry notes that the state should assume a more prudent approach in terms of public spending because the state policies could be implemented with less funds than spent at present. The spending of surpluses at the end of the year was inexpedient, while the public administration numbers were not optimised, the finance ministry report says. Therefore, a priority in terms of state budget management would be efficient.