about  7.7  and  6.7  percent  in  2007  but  is  expected  to  increase  to  about  9.8  and  7.3  percent  in   2008  respectively.  Table  4.1  provides  details  of  real  GDP  growth.  Growth  in  the  service  sector   exceeded  the  target  of  6.7  percent  in  2007.  However,  that  of  industry  fell  below  the  expected   growth   of   7.7   percent   in   2007.   The   mining,   quarrying   and   the   construction   sector   has   been   the   main  sub  sectors  that  drive  industrial  growth.   Table  4.1:  Trends  in  Real  GDP  and  GDP  Per  Capita  Growth     2005   2006   2007*   2007**   2008***   Real  GDP  Per  capita  growth   Real  GDP  Growth     3.5   5.8   3.9   6.2   4   6.5     6.3     7.0     Agriculture   Industry     4.1   5.6     4.5   6.2     6.1   7.7     4.3   7.4     5.0   9.8   Service   Net  Indirect  Tax   5.4   4.4   5.5   4.5   6.7   4.4   8.2   4.4   7.3   6.0   Source:  MOFEP,  Budget  Statements   Real  GDP  growth  rate  based  on  implicit  population  growth  rate  of  2.3  percent  calculated  from  GSS.     *-­‐  target,    **  -­‐  Projected  outturn,  ***  -­‐  projections       Fiscal  policies  in  2007  focused  on  maintaining  and  improving  the  debt  situation  inspite  of  the  oil   price   hikes   and   the   energy   crises   as   well   as   mobilizing   domestic   and   foreign   resources   to   implement  activities  in  the  GPRS  II.  Provisional  estimates  indicate  that  the  overall  cash  balance   was  in  a  deficit  of  8.1  percent  of  GDP  in  2007.  This  is  higher  than  the  budget  estimate  of  5.7   percent  of  GDP.     Table  4.2:  Selected  Government  Fiscal  indicators,  2000-­‐2007,  percent  of  GDP     2000   2001   2002   2003   2004   2005   2006   2007*   Total  Receipts     36.53   35.69   32.35   33.47   36.01   36.77   37.70   42.23   Total  Revenue   Tax  Revenue   Non  tax  revenue   17.72   16.26   1.46   18.16   17.25   0.91   18.43   20.12   17.9   19.56   0.53   0.56   23.81   21.81   1.42   23.87   20.76   1.91   22.25   25.52   20.25   22.87   0.8   2.55   Grants   Other  receipts   2.12   16.69   6.91   10.62   3.19   4.78   10.73   8.57   6.19   6.45   5.26   4.53   5.53   9.92   Total  Payments   36.52   35.7   32.34   33.7   36   36.77   37.70   44.82   66     5.07   11.63  

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