(July 8, 2007)--The Vatican reports a narrow budget surplus of $3.2 million in 2006, down from its strong financial showing the previous year.

In its annual financial report, the Vatican says it recorded revenues of $310 million against expenses of $306 million.

Many of the expenses are covered by payments from dioceses around the world.

Vatican museums also are a major source of revenue.

But in recent years, Vatican accounts have been battered by labor costs and the costs of the Vatican's expanding worldwide diplomatic missions.

More Local And State News >>More National News >>More Business News >>Sports >> Weather >>