Revenue to the state budget at the end of March 2007 was nearly 3.5 billion leva, Finance Minister Plamen Oresharski said in a financial report.

In comparison, state budget revenue was 440 million leva in the same period of 2006, a 14.6 per cent increase, Focus news agency reported.

After Bulgaria’s European Union (EU) accession, the country’s budget policy focused on the use of European funds. The main aim is to increase economic competitiveness and to maintain steady economic growth as well as developing human capital and maintaining a stable fiscal policy.

Tax revenue at the end of March was 2 950.2 billion leva, an increase of 11.8 per cent compared with the first quarter of 2006. Revenue from taxes on dividends, liquidation shares and income was 36.7 million leva.

Indirect taxes brought 1 851.6 billion leva to the treasury. Revenue from VAT decreased to 88.1 million leva, which has been attributed to changes to the VAT law.

Non-tax revenue for the first quarter of 2007 was 429.2 million leva, an 11.7 per cent increase compared to 2006.

State spending in Q1 2007 was 3 066.1 billion euro.