Cyprus House approves 2007 state budget

The Cyprus House of Representatives after a three-day debate approved late Thursday the state budget for 2007, Cyprus‘ last budget before its entry to the EU Economic Monetary Union (EMU) on January 1 2008.
The budget was approved by 36 votes in favour and 16 votes against. Coalition parties, left-wing party AKEL, Democratic Party and Social Democrats Movement EDEK as well as the European Party and the Ecologists and Environmentalist Movement voted in favour, while main opposition party Democratic Rally (DISI) voted against.
The budget provides for revenues amounting to CYP 3.31 bln compared with CYP 3.19 bln during 2006, showing an increase of 3.8%. It also provides for CYP 4.07 bln in expenditure, compared to CYP 4.03 bln in 2006, showing an increase of 0.9%. The 2007 State Budget aims to curb the fiscal deficit at 1.6% of the GDP (vs. an estimate of 2.0% of GDP for 2006). Public Debt is expected to be reduced to 64% of GDP vs. a forecasted 67% of GDP in 2006.

Furthermore, Cyprus’ budget deficit projected to drop to 1.5% of the gross domestic product this year, almost half a percentage point better than earlier forecasts.
Before the voting, the House also approved a total of 13 amendments submitted by the Finance Ministry for social benefits and other development funds.