Filenews 6 October 2022
Increased by €500 mil. is the state budget for 2023 submitted by the Minister of Finance, Konstantinos Petrides, to the President of the Parliament, Annita Demetriou, on Thursday.
The latest budget submitted by the current Government is adapted to the context of the new international economic crisis and is governed by an increase in operating, development and social expenditure, due to inflation, but also a reduction in the amount to be served by the interest on the public debt, according to what Mr. Petridis stated.
The Minister of Finance delivered to the President of the Parliament, in her office, the cover letter for the State Budget, as the submission of the budget itself is done electronically.
"I feel some emotion, because it is the last budget submitted by the Government of the last ten years," Mr. Petridis said, adding that the first budget submitted by the Government was under crisis conditions. "The last budget is being tabled again in the context of a, not endogenous, but international, crisis. It is a budget that is filled with weapons to deal with the crisis," he added.
He clarified that despite the pandemic crisis with two consecutive lockdowns and the current crisis, this budget is greatly increased, compared to last year, by about €500 million.
"It is increased in order to shield growth, which is our response to the crisis," he said, explaining that this is why development spending is increased by about 12%, while social spending is increased by about 4%, "which has already been strengthened in recent years with both the UGS and the GHS and various benefits", he said.
"Of course, it's a budget, which is also hit by inflation. The operating expenditure of the state is increased by 15% due to inflation, which also affects public finances," he noted.
The Minister noted that, as far as the servicing of public debt is concerned, the expenditure is €500 million. smaller than last year in interest servicing. "Despite the crisis, the increase in benefits, the support for inflation beyond €350 million, despite the increase in growth spending, we have also relieved the citizen by €500 million. to service the interest," he noted.
Mr. Petridis concluded that "the times are uncertain and difficult. It is a budget that gives the guarantees to move forward, but we need the right policies so that it can be used properly and I am sure that after parliamentary scrutiny we will also have this capacity to move forward."
"Prudent fiscal policy, this is what our state needs, for the benefit of the citizens", noted the President of the Parliament, thanking the Minister and describing as a "supreme legislative act" the submission of the budget. She added that it is very important that a surplus budget is delivered. "We will see them at length in the relevant parliamentary committees."
"Parliament will act within the appropriate frameworks, as it does every year. The required parliamentary control will be exercised and based on the composure of the House, it will decide on the adoption of the budget," she said.
Mrs. Demetriou mentioned that for the period "for which I was a Member of Parliament and now that I have the honour of being President of the House, I observe every year the submission of the budget and the improvement of public finances and especially now that we all realize that it will be a difficult period financially, due to the external factors that also affect our Cyprus, I believe that the Republic of Cyprus should be shielded in order to be able to deal with this crisis as well," she noted.
