Cyprus House approves state budget for 2006

The House of Representatives approved on Thursday the State Budget for 2006.

A total of 51 deputies present voted in favour of the budget while the deputy of the European Democracy Prodromos Prodromou voted against. The vote comes after a three-day debate at the House.

The State Budget for 2006 presented a net income of 2.3 billion pounds (up 13.5%) and net expenditure of 3.3 billion pounds (up 6.1%).

After implementation of planned measures the fiscal deficit is expected to drop to 1.9%, the growth rate to 4.2% and unemployment 3.7%.

The projected improvement of the productivity rate was estimated at 2.7% and that inflation would be around 2.5% in 2006.