The budget deficit in January-February 2010 was a total of 1.39 billion leva, including a deficit of 499 million leva in January and 900 million leva in February, the Finance Ministry said Thursday.

The fiscal reserve at the end of February was 6.34 billion leva.

Revenues and grants at the end of February totalled 3.097 billion leva and expenditure 4.49 billion.

VAT receipts stood at 684.1 million leva, which was 575.4 million leva less than this time last year.

The downward trend in import persisted while export has been growing in the past months. The shrinking import and lower prices of some resourses and materials for the processing industry have pushed down the receipts from VAT on imports.

On the other hand, the growing export has pushed up VAT refunds, and this, too, contributes to the contraction of VAT revenue, the Finance Ministry said.

The revenue from excise duties totalled 575.4 million leva at the end of February, with 83.4 million leva coming from other taxes.