Filenews 23 June 2023 - by Eleftheria Paizanou
Additional appropriations of €361 million The Government needs through a second supplementary budget to implement its plans in 2023.
Without excluding the possibility of tabling another supplementary budget later.
The budget submitted to Parliament yesterday will cover, among other things, the costs of the agreement to increase the rate of return of ATA and the allowance to low-income pensioners, as well as the measures taken in recent months to tackle the cost-of-living crisis.
The budget will also cover additional expenditure on social benefits and appropriations to support the health, education and sports sectors, as well as the housing scheme for displaced persons. Measures taken to strengthen the agricultural sector will also be financed.
The second supplementary budget was submitted to parliament just 114 days after the new government took over the government of the country.
It is noted that last April another supplementary budget, amounting to €75 million, was approved, which covered the expenses for the continuation of the electricity subsidy scheme, which expires at the end of the month, as well as the support measures for Ukrainian refugees and unaccompanied children.
Consequently, the additional appropriations needed so far by the Christodoulides Government have risen to €436 million, while by the end of the year, under the Law on Fiscal Responsibility, it can submit another supplementary budget to Parliament, unless exceptional circumstances arise.
As the amount of additional appropriations requested is large, apparently the Ministry of Finance will be called upon to explain to Parliament before it approves the budget, which will be discussed on Monday in the parliamentary Finance Committee.
How many in previous years?
It is worth noting that, according to data from the Treasury, supplementary budgets totalling €619 million were approved by Parliament last year, while in 2021 supplementary budgets concerned €691 million.
In 2020, when the coronavirus pandemic broke out, the additional appropriations approved by Parliament amounted to one billion.
In 2019, supplementary budgets were €688 million. and in 2018 €320 million. Every year, in addition to supplementary budgets, the state uses additional appropriations from the Fixed Fund of the Republic.
What will the €361 million cover?
The majority of the additional appropriations of €361 million were allocated to the European Union. will cover the increase in ATA, the implementation of (EU) co-financed projects, the purchase of water from desalination, as well as some development projects.
Specifically, for the four aforementioned sectors, an amount of €228 million will be spent.
Analytically:
– Additional appropriations of €60 million will be used to increase ATA to 66.7% of the index, as part of the implementation of the recently reached transitional agreement. – Amount of €60 million It will cover the costs of implementing co-financed projects.
– Funds of €59 million They will be available for the purchase of water, due to an increase in the cost of desalinated water, mainly due to the increase in the price of electricity.
– Appropriations of €56 million concern the government grant to the University of Cyprus for the implementation of development projects and for covering operating expenses.
– Funds €25.4 million will cover the purchase of the Metropolitan building, in which the Ministry of Labor will be housed, based on a purchase agreement, dated 14/12/2022.
– Amount €18.2 million It will be used to cover the cost of the extension of the measure to subsidize electricity consumption, in the context of addressing inflationary pressures, which expires on 30/6. These funds will cover the subsidy from mid-May until the end of June.
– Amount €15.8 million concerns a state grant to the Cyprus University of Technology (CUT) for the implementation of the construction of student dormitories, while a budget of €15.6 million. cover the cost of hosting displaced persons from Ukraine and unaccompanied minors, applicants for international protection.
Are we still paying for Covid-19?
The supplementary budget also foresees an amount of €15 million. for the purchase of medicines and vaccines against Covıd-19, another €11.5 million; will cover the costs for the recruitment of temporary teaching staff and funds of €9.4 million. will be given to the CSO for the improvement of sports facilities.
At the same time, funds of €8.3 million are included. concerning contractual obligations of the integrated Waste Management Facilities units of Pentakomo and Koshi.
For the "KtiZo" project, which concerns the repair/ maintenance/ reconstruction of apartments in government settlements, €7.3 million was included, while another €7 million. will cover support measures for agricultural products and the sheep and goat sector due to increased production costs.
Includes funds of €6.4 million. for independent services and €3.1 million on the social pension and the supplement to the minimum social security pension.
Amount: €2.9 million will cover the refund of the fine imposed on Cyta by the PSC. Finally, the budget also creates a number of posts.
According to the Ministry of Finance, the burden on the fiscal balance from the approval of the supplementary budget amounts to 0.85% of GDP.
An amount of €116 million is an intra-government transaction and does not affect the fiscal balance.
