Bulgaria 's government adopted Wednesday a package of 60 anticrisis measures in a move to curb its ever widening budget deficit.

The measures aim to cut spending and boost revenues in order to add another 1.6 billion leva (EUR818 million) to the budget, Prime Minister Boyko Borisov told journalists before the cabinet meeting that approved the package.

Parliament was expected to vote on the measures Thursday.

Trade unions and a number of business associations participated for the first time in drawing up the package and hailed the willingness of the government and businesses to share the burden of the crisis.

The measures include a 10% cut in salaries in parts of the public sector that haven't introduced personnel cuts as planned.

The government meanwhile agreed to deliver some BGN550 million in delayed payments on public tenders, European Union subsidies and reimbursements of value-added tax to businesses immediately.

It said it would limit a planned increase in gas prices to 5.88% from April 1.

Increased taxes on insurance companies and a new tax on money and other gambling prizes were also expected to boost the budget. Meanwhile, people with real estate property worth over EUR150,000 and high-end vehicles costing over EUR35,000 will have to pay a double 'luxury' tax, while those with private jets and yachts will have to pay triple.

Borisov said he was ready to raise VAT to 22% from the current 20%, if prosecutors failed to cancel costly contracts signed by the previous government that he said were "unlawful."

The government will also postpone a pension increase and seek to sell its minority stakes in companies privatized years ago, such as the country's three major electricity utilities.

Meanwhile, the government will seek to sell its excessive carbon dioxide emission quotas.

Analysts warned these measures would take time, and the only quick way to guarantee more money in the budget was to cut spending.

Bulgaria wrapped up 2009 with the lowest budget deficit in the European Union of BGN529 million, or just 0.8% of gross domestic product, at the cost of withholding vital payments to businesses. Slumping revenues at the beginning of this year however caused the budget gap to balloon to BGN499 million in January alone, and an estimated BGN1.2 billion to BGN1.3 billion, or 1.8% of GDP, by the end of February.

Bulgaria has had since 1997 a currency board arrangement with the International Monetary Fund that ties its currency to the euro at a fixed rate but obliges the government to keep a tight fiscal policy and run annual zero or surplus budgets.

The government has vowed to keep the currency board until it joins the eurozone, expected in 2013, but this means it will have to urgently stitch up its budget gap.

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