16/05/2012 11:10
The government pledged to take new measures of €300 million in its Stability Program submitted to the European Commission few days ago.
The Program says that the new measures will be equal to 1.8% of the Cypriot GDP for 2013, in order to achieve a deficit cut to 0.6% of GDP from 2.6% estimated this year.
The Program does not clarify the measures. It simply says that “they will be agreed with the social partners and the parties within the framework of the budget talks”.
The government believes that it is necessary to take additional measures in 2012 too, since revenues are lower than initial forecasts by €150-200 million.
The Program does not include certain references on the measures that will be taken to cover this year’s targets.
Cyprus committed to eliminate deficit by 2014, in order to meet its commitments during the signing of the fiscal pact.
In the Stability Program, the Ministry outnumbers the measures taken in order to cut this year’s deficit to 2.6% from 6.2% in 2011.
It gives special emphasis on measures of structural and recurring character, while extraordinary measures are restricted.
Among them are the temporary contribution of the public employees, the VAT hike to 17%, the increase in tax on deposits, the introduction of company duties and the revision of property duties.
The Ministry’s aim is Cyprus’s return to primary surplus of 0.4% in 2012, to be able to cover its expenses from its revenues, excluding the payment of interests for debt service.
It hopes that primary surplus will reach 2.6% in 2013, contributing to the gradual reduction of debt, which was shot to 71.6% in 2011.
As for growth, the SP provides that the economy will shrink by 0.5% this year and will recover to +0.5% in 2013. This provision differs from all previous estimates that talked about zero growth.
However, the Ministry insists on its commitment for a deficit cut below 3%.
The Program says that the new measures will be equal to 1.8% of the Cypriot GDP for 2013, in order to achieve a deficit cut to 0.6% of GDP from 2.6% estimated this year.
The Program does not clarify the measures. It simply says that “they will be agreed with the social partners and the parties within the framework of the budget talks”.
The government believes that it is necessary to take additional measures in 2012 too, since revenues are lower than initial forecasts by €150-200 million.
The Program does not include certain references on the measures that will be taken to cover this year’s targets.
Cyprus committed to eliminate deficit by 2014, in order to meet its commitments during the signing of the fiscal pact.
In the Stability Program, the Ministry outnumbers the measures taken in order to cut this year’s deficit to 2.6% from 6.2% in 2011.
It gives special emphasis on measures of structural and recurring character, while extraordinary measures are restricted. Among them are the temporary contribution of the public employees, the VAT hike to 17%, the increase in tax on deposits, the introduction of company duties and the revision of property duties.
The Ministry’s aim is Cyprus’s return to primary surplus of 0.4% in 2012, to be able to cover its expenses from its revenues, excluding the payment of interests for debt service.
It hopes that primary surplus will reach 2.6% in 2013, contributing to the gradual reduction of debt, which was shot to 71.6% in 2011.
As for growth, the SP provides that the economy will shrink by 0.5% this year and will recover to +0.5% in 2013. This provision differs from all previous estimates that talked about zero growth.
However, the Ministry insists on its commitment for a deficit cut below 3%.
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