The announced minimal non-taxable income of 200 leva announced in the Cabinet’s social policy strategy is missing in the budget prognosis for the coming three years, labour union representatives said.

Labour union KNSB analysed the budget prognosis, presented earlier by economists, Dnevnik newspaper reported.

According to the analysis the budget prognosis shows a long-lasting negative restriction tendency. Expenditure would be limited in the coming three years. This would decrease funds for education, science and social securities, KNSB representatives said.

At the same time state administration expenditure was on the rise. Capital expenditure in 2008 was expected to reach 5.5 million leva.

Real income would not increase, though Cabinet promised a 15 per cent salary increase by 2009, KNSB said. KNSB analysts said that taxation policies should have been accepted only after the drafting of budget 2007.