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Supplementary budget €102 million due to pandemic and war in Ukraine

06/05/2022 10:39

The Ministry of Finance has requested from Parliament the approval of a supplementary budget totalling €102.1 million due to the continuation of the coronavirus pandemic and the situation created by the war in Ukraine. The budget was approved by the Council of Ministers at its meeting on 4 May 2022.

The fiscal balance burden from the adoption of the proposed supplementary budget proposal amounts to 0.4% of GDP, based on current data, the Ministry of Finance notes in its report to the Parliament.

In particular, according to the Ministry of Finance the Council of Ministers has adopted a series of decisions requiring additional appropriations totalling approximately €71.5 million. The breakdown is as follows:

€53.0 million for measures relating to the Ministry of Health

€0.7 million for the implementation of measures at airports

€0.52 million for a grant to the School Boards for the costs of decontamination of school premises

€0.57 million for the purchase of services of the Public Helpline for the provision of information on Covid-19

€0.89 million compensation to Cheesemakers due to the restrictive measures imposed on the catering sector in Cyprus and abroad

€5.7 million for support to airlines

€10 million for other exceptional costs that may arise and depend on the outcome of the pandemic in the second quarter of 2022

Furthermore, the Ministry of Finance says that due to the situation in Ukraine, the following emergency needs have arisen, for which no appropriations are included in the state budget:

€18 million to increase barley and corn stocks for an additional period of 30 days and to purchase stocks and manage them for one year

€5 million for hospitality and general support for Ukrainian refugees

€7.6 million due to the excessive increase in feed and commodity prices