Cabinet adopts budget memorandum

The government this week adopted the Memorandum on Budget and Economic and Fiscal Policy for 2008. The document also contains projections for 2009 and 2010, the Ministry of Finance said in a statement. Cabinet adopts budget memorandum The statement added that the memorandum contains a framework for implementing the country's economic and fiscal policy and structural reforms in the next three years, a first step toward adopting the budget for next year. The goals set out include a GBP growth of 6.3 annually, bringing down inflation to four percent in 2010, and a decrease of the currently high current balance deficit from 14.7 percent of the GDP in 2007 to 11 percent in 2010. In order to achieve these goals in 2008, the memorandum envisages lowering of the overall public spending share in the GDP by 1.2 percent, at the same time dropping one percent point from the amount of the budget's participation in the GDP. Key measures for lowering public spending are: maintaining salary funds for the budget users throughout 2008 at the 2007 level, lowering budget subsidies by five percent and investment by 10 percent, both compared to this year.

Cabinet adopts budget memorandum

The statement added that the memorandum contains a framework for implementing the country's economic and fiscal policy and structural reforms in the next three years, a first step toward adopting the budget for next year.

The goals set out include a GBP growth of 6.3 annually, bringing down inflation to four percent in 2010, and a decrease of the currently high current balance deficit from 14.7 percent of the GDP in 2007 to 11 percent in 2010.

In order to achieve these goals in 2008, the memorandum envisages lowering of the overall public spending share in the GDP by 1.2 percent, at the same time dropping one percent point from the amount of the budget's participation in the GDP.

Key measures for lowering public spending are: maintaining salary funds for the budget users throughout 2008 at the 2007 level, lowering budget subsidies by five percent and investment by 10 percent, both compared to this year.