Cyprus 2012 state budget contains structural measures aiming to avert negative developments to the Cypriot economy, Cyprus Minister of Finance Kikis Kazamias said on Wednesday.

Presenting the 2012 state budget and the 2012-2014 Medium-term Fiscal Framework, approved at Tuesday’s Council of Ministers, Kazamias said “the rapid implementation of the economic programme prepared by the government and included in the 2012 state budget safeguards the consolidation of the public finances,“ adding that the budget could be described as “strict“ especially with regard to state expenditure.

The draft 2012 budget provides for total revenues of 6.22 billion euro, compared with 5.64 billion of 2011 and total expenditures, excluding loan payments, of 7.54 bilion euro compared with 8.01 billion of the 2011 state budget.

The Finance Minister said Cyprus 2011 growth rate is projected at zero, whereas 2012 growth rate may exceed 1% reaching 1.5% of GDP. He added that public debt will be maintained at the 2011 levels that is 65% of GDP, and is expected to decline to 62.8% GDP by 2014.

Kazamias noted that the 2012 budget and the medium-term framework envisage to reduce the 2011 budget deficit estimated between 6% and 6.5%, to 2.3% of GDP, whereas the deficit is expected to be further reduced to 1% of GDP by 2014.