SOFIA: Bulgaria expects to post a fiscal surplus of 2.4 percent of gross domestic product on a cash basis at the end of August, the Finance Ministry said on Friday.

It said the Balkan country’s consolidated fiscal programme recorded a surplus of 2.0 billion levs, or 1.9 percent of GDP, in the first seven months of 2018, mainly due to improved tax collection.

Bulgaria is targeting a fiscal shortfall of 1.0 percent of economic output this year as it allots more funds for education and public sector wages. It ended 2017 with a surplus of 0.9 percent of GDP.

The formerly communist country’s spending usually accelerates in the last quarter.

The Finance Ministry sees the economy growing by 3.9 percent this year mainly due to increased domestic demand and strong exports. The economy expanded by 3.6 percent in 2017.

Government revenues in July rose 10.6 percent from the same period in 2017 to 22.5 billion levs. Spending rose 11 percent to 20.5 billion levs in July from a year ago, mainly due to higher expenditures for teachers wages and state pensions, data showed.

Fiscal reserves held under the currency regime pegging the lev to the euro stood at 10.8 billion levs at the end of July.

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