2007 State Budget before House Committee

Finance Minister Michalis Sarris presented before the House Finance Committee the State Budget for 2007, aiming to pave the way for the normal accession of Cyprus to the Eurozone and the implementation of the Lisbon programme and the strategic development.
Sarris said that a joint effort, cooperation and a common policy is needed, with the consensus of all parties and the parliament, as well as of social partners.
The budget provides for revenue amounting to CYP 3,315.3 mln compared with CYP 3,194.2 mln during 2006, showing an increase of 3.8%
It also provides for CYP 4,070.0 mln in expenditure, compared to CYP 4,033.7 mln in 2006, showing an increase of 0.9%.
Development expenditures are estimated at CYP 431.6 mln for 2007, compared to CYP 398.3 mln in the 2006 State Budget.
As regards prospects for the year 2007, Sarris said that the rate of development is expected to reach 3.8%, registered unemployment 3.6%, inflation 2.3%, while the public deficit will be 1.6 of the Gross Domestic Product (GDP) and public debt 64% of the GDP.
Fiscal goals for 2007, he added, are set so that public deficit is limited to 1.6% of the GDP, since it was 2.4% at the end of 2005 and is estimated to be 2.0% for 2006. Public debt is expected to fall at 64.0% of the GDP, (70.3% in 2005 and 67.0% in 2006), Sarris said.
He noted that the budget is based on the Cyprus government’s programme and the goals it has set out.
These goals are “our accession to the Eurozone, through financial purification and the Lisbon programme and the strategic development programme, providing for various expenditures, development projects and financial policy amendments, that will ratify the high development paces,” he added.