30/09/2015 15:41
A primary surplus of 1,9% corresponding to an overall fiscal deficit of 0,9% of GDP is expected to be achieved in 2015 according to a letter by the minister of finance Xaris Georgiades that accompanies the state budget of 2016.
According to the minister the public debt in 2015 is estimated to fall to 106,3% of GDP compared to 107,5% at the end of the previous year.
He also points out that in 2016 the fiscal balance is expected to be marginally negative at 0,1% of GDP with the primary surplus reaching 2,4%.
In his letter Mr Georgiades stresses that the 2016 budget takes into account the current developments supporting the economic recovery which begun since the start of this year.
He adds that both the budget and the medium-term budgetary framework is the last to be prepared while Cyprus is under the economic adjustment program.
He also stresses that Cyprus has successfully completed all of the program reviews, something that has strengthened significantly the economy's trust, both domestically and internationally.
He points out that any fiscal imbalances have been eliminated while the government bond yields have declined considerably facilitating the restoration of the country's credit ratings.
According to Mr Georgiades, after an unprecedented four-year period of recession the economy has returned to positive growth.
It is noted that for 2015 the projection included in the memorandum of a real growth rate of 0,5% has been adopted, and that the ministry's forecast is 1%.
The minister refers to a decline in the unemployment rate in the second quarter of 2015 to 14,7%.
The 2016 budget provides for €5.941 mn in expenses excluding interest costs compared to a revised €5.860 mn in 2015, an increase of 1,4%.
The total budgeted expenses reach €6.636 mn representing a 0,4% decline from 2015 due to lower interest expenses.
Budgeted expenditures for development projects are 5% higher than in 2015.
According to the medium-term budgetary framework of 2016-2018, revenues for 2017 are expected to reach €6.092 mn and in 2018 €6.326 mn while total expenses are projected to be €6.703 mn and €6.816 mn respectively.
According to the minister the public debt in 2015 is estimated to fall to 106,3% of GDP compared to 107,5% at the end of the previous year.
He also points out that in 2016 the fiscal balance is expected to be marginally negative at 0,1% of GDP with the primary surplus reaching 2,4%.
In his letter Mr Georgiades stresses that the 2016 budget takes into account the current developments supporting the economic recovery which begun since the start of this year.
He adds that both the budget and the medium-term budgetary framework is the last to be prepared while Cyprus is under the economic adjustment program.
He also stresses that Cyprus has successfully completed all of the program reviews, something that has strengthened significantly the economy's trust, both domestically and internationally.
He points out that any fiscal imbalances have been eliminated while the government bond yields have declined considerably facilitating the restoration of the country's credit ratings.
According to Mr Georgiades, after an unprecedented four-year period of recession the economy has returned to positive growth.
It is noted that for 2015 the projection included in the memorandum of a real growth rate of 0,5% has been adopted, and that the ministry's forecast is 1%.
The minister refers to a decline in the unemployment rate in the second quarter of 2015 to 14,7%.
The 2016 budget provides for €5.941 mn in expenses excluding interest costs compared to a revised €5.860 mn in 2015, an increase of 1,4%.
The total budgeted expenses reach €6.636 mn representing a 0,4% decline from 2015 due to lower interest expenses.
Budgeted expenditures for development projects are 5% higher than in 2015.
According to the medium-term budgetary framework of 2016-2018, revenues for 2017 are expected to reach €6.092 mn and in 2018 €6.326 mn while total expenses are projected to be €6.703 mn and €6.816 mn respectively.
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