The Bulgarian parliament on Wednesday adopted on a first reading a 2009 national budget that will slash annual growth and foreign investment targets in response to the tightening global outlook.

The budget foresees economic growth of 4.7 percent and counts on attracting foreign direct investment of 5.3 billion euros.

These targets are significantly lower than previous estimates for 6.5 percent annual growth and 6.3 billion euros in investment next year.

Parliament also on Wednesday approved government plans to peg end-2009 inflation at 5.4 percent and bring average annual inflation to 6.7 percent next year.

Bulgaria has seen a slump in foreign capital inflows, a primary driver of economic growth, but its banking system has so far remained stable against the global crunch.

The government however vowed to keep up tight fiscal discipline and again aim for a 3.0 percent budget surplus next year, as a buffer against possible troubles.

`The budget deficit remains an important stability anchor for the country, a guarantee to the currency board and the fixed exchange rate of the lev,` Bulgaria`s currency, Prime Minister Sergey Stanishev said Wednesday in parliament.

Stanishev added that part of the planned surplus could be pumped into the economy if growth and investment slumped below expectations.

He also predicted a possible shrinking next year of Bulgaria`s ever growing current account deficit, forecast to balloon to 24 percent of gross domestic product.

The opposition in parliament attacked the budget on Wednesday as `unrealistic` in its targets and `too lavish` in its social and capital spending, aimed at improving the ruling Socialist-led coalition`s slumping popularity ahead of the next general elections in 2009.

Parliament however approved the proposed 20-percent rise in pensions and 10-percent rise in salaries in the public sector as well as a 20.9-percent increase in capital spending for infrastructure projects.

In order to enter into force the draft budget has to be approved on a second reading by the legislature.