28/05/2003 15:13
The recent criticisms of the CB Governor, Christodoulos Christodoulou, on the incorrect evaluation of the state revenues from the tax reform have ended up in a sparring match between the DISY MP Prodromos Prodromou and the AKEL MP, Stavros Evagorou.
The two MPs admitted that the final revenues from the tax reform will be considerably lower compared to the expenditure, but each one kept blaming the political party of the other.
Mr. Prodromou said that the fiscal indices fell into the «red» and this may cause problems to the Cyprus economy, insisting that the fiscal aspect of the tax reform was unbalanced.
Mr. Evagorou replied that the mismanagement of the Cyprus economy by DISY has led the economic indices into the «red».
In return, Mr. Prodromou noted that the tax reform was a great success for the Republic, which introduced social measures to offset the tax increases and added that AKEL and DIKO are exclusively responsible for the unconstitutional laws approved at that time (such as the income criteria on the children benefit). «The current government should have no complaints. The deficits resulting from the accounts of the tax reform are at the hands of DIKO and AKEL», Mr. Prodromou said.
On the other hand, Mr. Evagorou noted that DISY attempts to enjoy the positive outcome from the tax reform and disclaim the negative effects, stressing that the cost of the tax reform had been unanimously decided by the political parties and the Finance Ministry. «DISY is not in the position to blame the current government, as it was Clerides’ government that proceeded to a mass employment of civil servants and shot the state expenditure to CYP 145 million (from CYP 25mln)», Mr. Evagorou concluded.
The two MPs admitted that the final revenues from the tax reform will be considerably lower compared to the expenditure, but each one kept blaming the political party of the other.
Mr. Prodromou said that the fiscal indices fell into the «red» and this may cause problems to the Cyprus economy, insisting that the fiscal aspect of the tax reform was unbalanced.
Mr. Evagorou replied that the mismanagement of the Cyprus economy by DISY has led the economic indices into the «red».
In return, Mr. Prodromou noted that the tax reform was a great success for the Republic, which introduced social measures to offset the tax increases and added that AKEL and DIKO are exclusively responsible for the unconstitutional laws approved at that time (such as the income criteria on the children benefit). «The current government should have no complaints. The deficits resulting from the accounts of the tax reform are at the hands of DIKO and AKEL», Mr. Prodromou said.
On the other hand, Mr. Evagorou noted that DISY attempts to enjoy the positive outcome from the tax reform and disclaim the negative effects, stressing that the cost of the tax reform had been unanimously decided by the political parties and the Finance Ministry. «DISY is not in the position to blame the current government, as it was Clerides’ government that proceeded to a mass employment of civil servants and shot the state expenditure to CYP 145 million (from CYP 25mln)», Mr. Evagorou concluded.
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