The expected GDP growth rate in 2007 would reach 5.8 per cent, or three per cent higher than the EU predictions for economic growth in Bulgaria, draft budget 2007 approved on October 30 said.

On October 31 Finance Minister Plamen Oresharski would hand the project to Parliament Speaker Georgi Pirinski.

Starting July 1 2007 pensions would increase by 8.5 per cent. The maximum pension would reach 490 leva, increasing from the current 455 leva.

Wages are expected to increase by 10 per cent and non-taxable income would go up to 200 leva from the current 180 leva.

Budget 2007 is the first after Bulgaria’s EU accession on January 1. Accession and the chance Bulgaria would get to benefit from EU funds would enable the national economy develop further, a Council of Ministers press release said.

Some of the main priorities featuring in the draft budget 2007 include maximal utilisation of EU funds, more social policies, development of modern information technologies and investment in human capital.