Cyprus House approves 2008 state budget

The Cyprus House of Representatives after a three-day debate approved late Thursday the state budget for 2008, Cyprus‘ last budget in Cyprus pounds as the country adopts the euro as of 1st of January 2008.
The budget provides for revenue of CYP4.13 bln and expenditure of CYP4.41 bln. The budget was approved by 37 votes in favour and 17 votes against. 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 against voted main opposition party Democratic Rally (DISY).
In 2007 revenues amounted CYP3.31 bln and expenditures to CYP4.07 bln.

The 2008 State Budget aims to limit 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 53.2% of GDP vs. a forecasted 61.5% of GDP in

2007. 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% whilst registered unemployment is expected to decrease to 3.9%.