Cyprus Approves 2011 Budget Aiming to Cut Deficit to 4.5% of GDP

Cyprus’s parliament approved the eastern Mediterranean island’s 2011 budget yesterday that aims to cut the fiscal deficit to 4.5 percent of economic output from around 6 percent this year.

Revenue is set to rise 4.7 percent annually to 6 billion euros ($8 billion), boosted by the introduction of a 5 percent value added tax on foodstuff and medicines from Dec. 14 and the increase of excise taxes on tobacco products from Dec. 10.