Filenews 11 December 2021 - by Eleftheria Paizanos
No purchase of real estate, for housing services or other needs, will be able to be made by the government in 2022 if it is not informed and if the Parliament does not consent beforehand. This is just one of the many restrictions that the opposition is putting on the government through interventions in the state budget for 2022.
The opposition parties have come together and through the dozens of amendments to the state budget they have prepared, they will seek to have under their control all the real estate transactions that the state intends to proceed with, more than 14 months before the 2023 presidential election.
During yesterday's meeting of the members of the House Standing Committee on Finance, the majority of the opposition parties decided to table an amendment proposing a horizontal crucifixion of all funds related to the purchase of real estate, so that their release would require information and consent of the Finance Committee.
At the same time, the amendment to end the employment, as employees of indefinite duration, of the four associates of the President of the Republic after the end of the term of the present government seems to be gaining ground. The four associates of President Anastasiades were hired as associates and converted to open-ended, something that was recently announced through a note by the Auditor General, provoking reactions. Initially, this amendment was tabled by AKEL but it is expected to be co-signed by the DIKO and supported by other opposition parties. The Committee has called on the services of the House to find a lawful manner for the wording of this amendment, for which there are reservations as to whether it is compatible with the constitution.
Another amendment which seems to be gaining a majority concerns the crucifixion of the salaries of the special advisers of the President of the Republic, the ministers, the deputy ministers and the government representative.
Provided that, unless unexpected, the state budget for 2022 will be approved with the votes of the MPs of DISY, DIKO and DIPA, the opposition parties are focusing this year on the amendments they will approve, in order to send political messages to the government.
At yesterday's meeting of the Finance Committee there were convergences on many amendments prepared by the party's finance staffs. Some of the amendments have been consolidated, some have been withdrawn and others have been revised. From 150 that were originally the amendments forwarded to the services of the House, their number as of yesterday has been reduced to around 50 and may be reduced further.
As in previous years, there is an agreement between the opposition parties for a horizontal reduction of 7% to 10% of operating expenditure, funds related to staff training, seminars in which state officials participate and advisory services. These funds, according to opposition MPs, should be reduced to tackle the waste of public money. It is worth noting that in previous years these amendments were also supported by DISY, while last year, after the vote against the state budget, the Ministry of Finance in the revised budget had accepted and incorporated the reductions in expenditure in the revised budget.
In addition, together the opposition will cut off spending on privatisations, which it has been doing in recent years, with some exceptions. Under its supervision, the opposition wants to have big issues, so it is expected to table amendments for the crucifixion of the Audiovisual Industry Plan, the Estia Plan, the Solidarity Fund, the infrastructure in Vassilikos for the advent of natural gas, the housing plans, the business and housing loan subsidy scheme, as well as various road projects.
In addition to the cut-off and the commitment of funds, a series of appropriations will include a nested note to inform the House before money is spent by the relevant services. Of course, there was no consensus on all the amendments, due to a different philosophy and ideology, so the parties will also table individual amendments.
| Differing views on the budget but adopted |
Differing views are expressed by the members of the House Standing Committee on Finance on the 2022 budget, which is expected to be approved. According to the Commission's report, some Members express the view that the budget lacks vision and perspective, while some other members note that the structural problems of the Cypriot economy are not being addressed in a proper and holistic way. Other members of the Committee, from the government camp, expressed the view that the budget serves the development prospects of the Cypriot economy.
The Finance Committee draws the following conclusions through its multi-page report:
• The Cypriot economy, like the European and global economy, continues to depend to a large extent on the course of the COVID19 disease. The wish of all sides is to smooth the effects of the health crisis on the Cypriot economy as soon as possible and to return it to a sustainable growth path.
• The medium-term outlook, based on the government's forecasts, although characterised by uncertainty, is positive.
• The sustainable development of the economy, the reduction of public debt to sustainable levels, the achievement of a budget surplus, the protection of consumers' living standards from possible inflationary pressures and the safeguarding of the welfare of citizens in general should be among the main policy priorities of the government.
• The promotion of the green economy, digital transformation, research and innovation, the rational and effective management of non-performing loans, the implementation of structural reforms on a sound basis, as well as the implementation of important development projects will contribute to the recovery and growth of the economy.
• The rational and optimal implementation of the national Recovery and Resilience Plan, the use of the European tools included in the Cohesion Policy Programme 2021-2027 and the financial instruments of the European Investment Fund, will contribute to supporting employment, enhancing entrepreneurship and developing the economy.
