Bulgaria will cut public spending by an additional 7.5 percent and improve tax collection to avoid slipping into a budget deficit at the end of the year, Finance Minister Simeon Djankov said on Wednesday.

'There are no cuts in wages, pensions ... but the cuts are in planned capital investments,' Djankov told a news conference.

Economists have warned that without the cuts, the Balkan country faces falling into budget deficit for the first time since 2002 that may put pressure on Bulgaria's currency peg to the euro.

Source: Forbes