Cyprus-Forum.com

[joe]

Cyprus Budget Forecasts 3.8 Pct Growth
AP
NICOSIA, Cyprus (AP) - The economy of Cyprus will grow at a rate of 3.8 percent next year with the deficit falling to 1.6 percent, according to the 2007 budget presented to parliament on Monday.

The projected growth rate for 2006 was 3.7 percent, while the budget deficit was an estimated two percent of gross domestic product.

The budget tabled by Finance Minister Michalis Sarris forecasts a 10.8 percent increase in net state revenues without additional taxation.

"Revenues will increase substantially due to high growth rates and better tax collecting ability by the state," Sarris said.

Increased social and development spending are also key elements of the 2007 budget.

Social spending is set to rise by 7.6 percent, "which is a substantial growth rate," Sarris said.

"Development spending will increase by 8.4 percent with a lot of emphasis on education, health, research, innovation and infrastructure."

The public debt is set to drop to 64 percent of GDP, from 67 percent in 2006.

Cyprus joined the European Union in May 2004 and has set Jan. 1, 2008, as the target date for adopting the euro.

[Sotos]

Numbers are good. But do those numbers really mean anything for people?