09/06/2003 13:56
Finance Minister, Marcos Kyprianou, has severely criticized former government for a “destructive policy” and “humiliation” of the State before the European Union.
Rejecting the allegations of DISY MP, Lefteris Christoforou, that the former government has delivered a strong economy pursuant to the reports of the international and EU agencies, Mr. Kyprianou said that that the former government had submitted false figures to the foreign agencies. “EU’s confidence is shaken”, he added.
Mr. Kyprianou noted that EU officials have called the Cyprus government to account on the false forecasts, especially with regard to the fiscal deficit, which fluctuates to 5.3% (not 2.5% according to estimates).
The current government attempts to restore economy and the economic policy for 2003 will be based on the Budget submitted by the former government.
Former government’s £300 mln
Mr. Kyprianou announced that the government has no option but to submit a complementary budget the soonest possible.
Sources revealed that the economic liabilities left by the former government concern:
• £60 million. Defense.
• £65 million. Pay increases in civil servants.
• £20 million. Payment to medicine traders.
• £3 million. Dekeleia-Famagusta road
• £4,5 million. Limassol road
• £ 4,8 million. Benefits to foreign diplomats
• £41 million. VAT rebate
• £ 8 million. Municipalities due to the loss from the abolition of the Professional Tax
• £10 million. Water Supply Boards
• £ 24 million. Expropriations.
• £ 8 million. Natural devastations (Tornado in Limassol)
Rejecting the allegations of DISY MP, Lefteris Christoforou, that the former government has delivered a strong economy pursuant to the reports of the international and EU agencies, Mr. Kyprianou said that that the former government had submitted false figures to the foreign agencies. “EU’s confidence is shaken”, he added.
Mr. Kyprianou noted that EU officials have called the Cyprus government to account on the false forecasts, especially with regard to the fiscal deficit, which fluctuates to 5.3% (not 2.5% according to estimates).
The current government attempts to restore economy and the economic policy for 2003 will be based on the Budget submitted by the former government.
Former government’s £300 mln
Mr. Kyprianou announced that the government has no option but to submit a complementary budget the soonest possible.
Sources revealed that the economic liabilities left by the former government concern:
• £60 million. Defense.
• £65 million. Pay increases in civil servants.
• £20 million. Payment to medicine traders.
• £3 million. Dekeleia-Famagusta road
• £4,5 million. Limassol road
• £ 4,8 million. Benefits to foreign diplomats
• £41 million. VAT rebate
• £ 8 million. Municipalities due to the loss from the abolition of the Professional Tax
• £10 million. Water Supply Boards
• £ 24 million. Expropriations.
• £ 8 million. Natural devastations (Tornado in Limassol)
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