The economic growth rate expected by the end of the Cabinet's term in 2009 is 6.1 per cent, according to the budget prognosis for the period between 2007 and 2009.

Bulgaria's GDP growth rate would reach 5.8 per cent in 2007 and 6.2 per cent in 2008, according to economic analysis.

According to predictions inflation would reach 4.4 per cent in 2007 but would decrease to 2.8 per cent in 2008.

The Cabinet would aim at increasing the standards of living and providing steady economic and social development, a Council of Ministers official press release said. One challenge these policies could face was the maintenance of steady fiscal position and mactroeconomic stablity.

Bulgaria expects a 0.8 per cent budget surplus in 2007. In the coming two years the percentage would vary slightly. Predictions take into consideration the high current account deficit.

National expenditure in 2007 would include for the first time Bulgaria's contribution to the EU budget. Expenditure would reach 20 768.2 million leva or 40.7 per cent of the GDP, according to predictions.