Nicosia.- (CNA) — Cyprus Minister of Finance Charilaos Stavrakis has estimated that the 2010 budget deficit will be around 6%, according to the preliminary data. He also stressed that the main target for 2011 is to reduce the deficit to 4,5% of GDP.
Presenting the financial situation of the Cyprus economy during the first eight months of 2010, and the estimations of the Ministry of Finance for the four last months of 2010, Stavrakis said that the deficit, during the first eight months of the year is increased by 22 million euro, compared to the same period last year.
As regards state expenses during the last four months of the year (September-December), Stavrakis said that these will remain at the same levels of 2009, while income is expected to be improved by 20 million euro.
Analyzing the data, Stavrakis said that the state expenses marked an increase of 6,72% (4,84 billion euro) in the first eight months of 2010. As he said, due to three changes in the methodology of the estimation of the state expenses, these are decreased to 2%.
Presenting the Ministry’s estimations for the state economy in 2011, Stavrakis said that economy’s growth rate is expected to reach 1,5%, the inflation rate 3% and the increase of GDP 4,5%.
Stavrakis said that the Ministry forecasts that the increase of the state income will be 4,7%, compared to 2010. He also said that the increase of state expenses will be reduced to 1,1%, which will restrain the budget deficit to 5,4% without taking any added measures.