Cyprus House approves 2009 state budget

The Cyprus House of Representatives, after a three-day debate, approved late Thursday the 2009 state budget, which provides for EUR7.3 bln in expenditure, up 10.6% compared to 2008, and revenue of EUR 6.87 bln, up 4.7% compared to a year ago. The budget deficit is EUR1.39 bln.
The budget was approved by 33 votes in favour and 20 votes against.
Left-wing party AKEL, Democratic Party and Social Democrats Movement EDEK as well as the Ecologists and Environmentalist Movement, voted in favour.
The main opposition Democratic Rally party (DISY) and the European Party voted against.
The 2009 State Budget aims to curb the fiscal surplus at 0.3% of the GDP (vs. initial estimates of 0.7% and vs. an estimate of 0.5%+ of GDP for 2008). Public Debt is expected to be reduced to 45% of GDP vs. a forecasted 49% of GDP in 2008.
According to the Ministry of Finance the GDP growth rate for 2009 is expected to
reach 3.0% (vs. initial estimates of 3.7%) in real terms. Inflation is expected to vary
between 2.5-3.0%, whilst registered unemployment is expected to remain stable at
4.1%.