Follow Cyprus Investment Immigration and stay updated on Cyprus economic developments: The Cypriot Cabinet has approved the 2014 fiscal budget, with a preliminary budget deficit, excluding debt interest costs, at 3.0% of Cyprus's GDP, which is lower than the 4.25% deficit target stipulated by the Troika in the bailout agreement.
This is the first budget since Cyprus received its bailout. Net expenditure will be reduced by 10% compared to 2013, totaling a reduction of 626 million euros. Although this is lower than the previously set reduction target of 700 million euros, the shortfall can be covered by additional revenue and increased funding for Cyprus from the EU budget.
Some austerity measures were approved by Parliament last December and will be implemented on January 1, 2014, while additional measures will be submitted to Parliament for review along with the budget.