18/09/2012 07:25
Salary and pension cuts and the imposition of additional or new taxes are among the measures included in the state budget 2013 – the first under the shadow of troika.
The budget includes partially troika’s recommendations for achieving the fiscal targets of 2013 - that is to bring deficit below 3% against 4.5% that this year’s revised target is.
On Thursday and Friday, President of the Republic, Demetris Christofias will meet with the parties and the social partners to discuss counterproposals of the Cypriot side to the draft memorandum that troika submitted during its visit.
The information was confirmed to StockWatch by Government Spokesman, Stephanos Stephanou who did not rule out delaying the submission of the budget to Parliament because of the contacts between President Christofias and the political forces and social partners (employers and trade unions).
As already announced, the budget talks will continue on Saturday morning, since this was deemed necessary after certain members of the Council of Ministers sought to discuss privately with the Finance Minister in relation to the cuts made at various development projects.
All Ministries responding to the Finance Minister’s call for spending cuts set priorities in the proposed development projects, most of which "were cut" by the Ministry.
Projects such as the creation of the archaeological museum, roads, nursing homes and other development projects in partnership with the private sector appear to have been left outside the budget.
Thus, the Ministers asked to have a new round of consultations with the Finance Ministry to reassess the priorities of the Ministries in the implementation of development projects for 2013.
The Council of Ministers discussed the counterproposals to troika ahead of the second round of consultations.
The government will not accept a cut of the 13th salary. The Cypriot side will counter-propose a percentage cut from the monthly salaries to save €80 million, because this is the actual cost of the state of the 13th salary plus €40 million returned to state coffers in the form of income tax.
It is expected that cuts will affect both civil servants and employees in the private sector to mitigate the impact on the first ones, from who troika asks cuts of 15%.
Also, the government will reintroduce three tax bills, which had been submitted previously but had been rejected by the opposition.
A new bill will be submitted for the elimination of tax evasion and the real estate.
As for the pensions, the government will insist on their tiered cut and will suggest not cutting pensions below €1000.
With regard to development, the Cypriot side will make clear that this sector must be the basis for the economy to rebound.
Therefore, it will submit documented positions that the licensing process for claiming plots in the Cypriot EEZ for natural gas it will add to the state coffers €300 million by the end of the year.
The government plans to inject this amount for development costs.
The budget includes partially troika’s recommendations for achieving the fiscal targets of 2013 - that is to bring deficit below 3% against 4.5% that this year’s revised target is.
On Thursday and Friday, President of the Republic, Demetris Christofias will meet with the parties and the social partners to discuss counterproposals of the Cypriot side to the draft memorandum that troika submitted during its visit.
The information was confirmed to StockWatch by Government Spokesman, Stephanos Stephanou who did not rule out delaying the submission of the budget to Parliament because of the contacts between President Christofias and the political forces and social partners (employers and trade unions).
As already announced, the budget talks will continue on Saturday morning, since this was deemed necessary after certain members of the Council of Ministers sought to discuss privately with the Finance Minister in relation to the cuts made at various development projects.
All Ministries responding to the Finance Minister’s call for spending cuts set priorities in the proposed development projects, most of which "were cut" by the Ministry.
Projects such as the creation of the archaeological museum, roads, nursing homes and other development projects in partnership with the private sector appear to have been left outside the budget.
Thus, the Ministers asked to have a new round of consultations with the Finance Ministry to reassess the priorities of the Ministries in the implementation of development projects for 2013.
The Council of Ministers discussed the counterproposals to troika ahead of the second round of consultations.
The government will not accept a cut of the 13th salary. The Cypriot side will counter-propose a percentage cut from the monthly salaries to save €80 million, because this is the actual cost of the state of the 13th salary plus €40 million returned to state coffers in the form of income tax.
It is expected that cuts will affect both civil servants and employees in the private sector to mitigate the impact on the first ones, from who troika asks cuts of 15%.
Also, the government will reintroduce three tax bills, which had been submitted previously but had been rejected by the opposition.
A new bill will be submitted for the elimination of tax evasion and the real estate.
As for the pensions, the government will insist on their tiered cut and will suggest not cutting pensions below €1000.
With regard to development, the Cypriot side will make clear that this sector must be the basis for the economy to rebound.
Therefore, it will submit documented positions that the licensing process for claiming plots in the Cypriot EEZ for natural gas it will add to the state coffers €300 million by the end of the year.
The government plans to inject this amount for development costs.
Related Articles
