Prime Minister Sergei Stanishev announced the macroeconomic frame of Budget 2007.

According to the budget draft, taxes would be reduced, Banker newspaper reported. The social and health insurances fall by two to three per cent. The corporate tax might be reduced to 12 per cent.

Stanishev said that the untaxable income was increased with 20 leva and would become 200 leva a month. The government proposes changes in the import and export regime, resulting in better international trade environment.

As social policy was among the Cabinet's objectives, the minimal pensions and wages would also be increased, Stanishev said. Although the exact amount was not announced, wages would most likely be raised by 10 leva, Banker said.

The 2007 budget was calculated for 2.7 billion leva direct foreign investments. Stanishev said that this was a major increase. Over the first months of 2006 the country received 755 million euro foreign investments, compared to 392 million euro in 2005.

The budget deficit for 2007 should be 0.8 per cent. The planned GDP is 51 billion leva, and the economic growth rate is 5.8 per cent. The estimated inflation is 4.4 per cent.