I'm concerned with the lack of lighting and adding a coloured paint. A dark space that is small would be a difficult thing to paint two different colours. In essence, as I visualize it, you would be swapping "dark panelling" for "dark(er)" paint. You would end up with some of the same issues (if you paint with two different colours) as you have now, but instead of panelling, you will have painted panelling.

What most of us are saying is:
White top and bottom.
Leave window trim/door trim natural wood.
Remove the clutter and reorganize the furnishings to suite the space.

Here is something you may want to think about. You are going to have to use paint+primer on that panelling. How about (after you remove all the clutter) priming all surfaces (primer is white) and live with it x2 weeks. See how you feel about the "all white" feel to the room. This will NOW be your "jumping off" point. If you feel like a weight has been lifted, then EXCELLENT! White is the way to go! If you feel that something is missing, that's OK. You knew it was a "beginning stage" before you started priming.

Once the priming is done (and cured) - remember you will need x2 coats of primer on the panelling, NOW YOU CAN envision a new colour theme.

I don't mean want to crush the gray/yellow theme but I'm seeing the same "drab" colour scheme in your 'new' paint swatches that are contributing to the drab that you are feeling right now.

Gray/yellow work with MAGNIFICENT, LIGHT FLOODED ROOMS! Sadly, your space does not have the windows nor the lighting needed to pull off the yellow/gray that you are showing in the photos. If you really want gray, go the lightest you can find added to white. Your lighting in your home already has a "yellow" cast so anything you put in there is going to come out "yellow".

I know you are trying to "work with the colours in the room" (green carpet, mint drapes, etc) but I would wait until you had primed all your surfaces and then decide how much of that "light white" you want to get rid of.

The photos that have been added by the designers are beautiful...but they have light coming out of every seam! The quality of light is THE THING that makes a space "feel" good!

I worry, that with your limited budget, you are going to dive in with colour only to end up with the same room - only in gray and yellow instead of panelling and yellow.

Priming might be the "solution" to the "Go white?" question. It has to be done anywhay. Might as well see what it feels like before diving into the expense of painting. There is nothing to be lost but much to be gained in doing it one step at a time.

Prime first - colour choice later!