Cyprus 2010 Budget forecasts deficit at 4.5%

The state budget for 2010 aims at minimising the consequences of the global financial crisis, avoiding excessive public deficits, strengthening the constructive sectors of the economy, and enhancing social cohesion.
The draft budget, which was approved by the Council of Ministers, provides for revenue, excluding loans, of EUR5.79 bln, compared to the revised revenue of EUR 5.37 bln in 2009. The revenue growth rate for 2010 is estimated at 7.9%.
Total expenditure, excluding loan payments, is calculated at EUR 7.86 bln, compared to EUR 7.63 bln in 2009. The increase of the estimated expenditure for 2010 compared to 2009 is restricted to 3%, compared to 17.7% during the previous year.
The public deficit is expected to reach 4.5%.