Cyprus government approves 2008 Budget

The Cyprus Council of Ministers approved the Draft 2008 State Budget, which will be submitted to the House of Representatives for a final approval before the end of 2007.

The Draft 2008 State Budget provides for total revenue of CYP 3.27 bln compared to CYP 3.11 bln in 2007 and for expenditure of CYP 3.85 bln compared to CYP 3.60 bln in 2007.

The 2008 State Budget aims to curb the fiscal deficit at 0.5% of the GDP (vs. an estimate of 1% of GDP for 2007). Public Debt is expected to be reduced to 53% of GDP vs. a forecasted 61.5% of GDP in 2007 and 65.3% in 2006.

According to the Ministry of Finance the GDP growth rate for 2008 is expected at the same levels with the previous 2-3 years reaching 4% in real terms. Inflation is expected to vary between 2.3-2.5% compared to 2% in 2007 and 2.2% in 2006 whilst registered unemployment is expected to decrease to 4.1% in 2008 from 4.3% in 2007 and 4.5% in 2006.