THURSDAY, 29 JUL 2021

 

CONNECT

Facebook Linked In Twitter
Gold_July_leaderboard
GloriaJeans_266x90px
IMH LTD

Facebook Warns Growth Set To Slow 'Significantly'

President Anastasiades Receives Honorary Award by AHEPA in Athens

IMH LTD

ECONOMY

Petrides: No Lockdown Forseen in 2021 State Budget

Petrides: No Lockdown Forseen in 2021 State Budget

Minister of Finance Constantinos Petrides called on MPs to approve the 2021 state budget given the critical moments facing Cyprus due to the coronavirus pandemic, adding that the budget was drafted on the premise that no second general lock down would be necessary to combat the Covid-19 health crisis.


 
Presenting the state budget for 2021 to the parliamentary committee of Finance and Budgetary Affairs, Petrides said “the budget was drafted on one premise, that we will not go to a total lockdown”, adding that in case of a worst-case scenario, the Finance Ministry will adjust its budget expenditure as it did during the pandemic outbreak in 2020.


 
He added however that a lockdown would be considered as necessary only in case the country’s healthcare system could not cope with rising hospitalisations. “We do not intent to go to a total lock down just as we did in March and April (of 2020), that would mean an economic disaster,” he said, adding that most EU countries did not return to full lockdown despite the second wave of coronavirus infections.
 


Cyprus, as the majority of EU countries, is in the middle of second wave of Covid-19 infections with the authorities announcing additional measures to contain the spread of the pandemic and a partial lockdown in the cities of Limassol and Paphos which have recorded elevated infections.
 

 
Calling on MPs to approve the 2021 state budget, Petrides highlighted that “the criticality of the moment concerning the financial management of the pandemic,” noting, that everyone must help the country recover from Covid-19, but also lay the foundations for a sustainable economy through the 2021 budget. He described the budget as one of “emergency”.
 

 

The budget “has been drafted on the premise of targeted fiscal expansion which will not lead to a fiscal slippage and will create the conditions for a sustainable economy,” he said, adding the budget’s primary target is to tackle the consequences of the pandemic and to create the foundations for generating primary surpluses. The budget provides for an economic recovery in the region of 4.5% in 2021 following a contraction of 5.5% this year due to the coronavirus outbreak, with the Finance Minister stressing that projections are subject to uncertainty as a result of the ongoing pandemic.
 


Following years of fiscal surpluses, Cyprus fiscal balance will record a deficit of 4.5% of GDP in 2020 and a much smaller deficit of 0.7% in 2021, Petrides said, adding that public debt is projected to rise to 115% of GDP in end-2020 and will decline to 110% in 2021. He noted that the Cypriot public debt rose as a result of large bond issuances by the government in a bid to create the necessary cash reserves which amount to 20% of GDP. Political parties stated that the budget relies on very optimistic assumptions.
 

Ruling right-wing Democratic Rally, MP Onoufrios Koulla said that the coronavirus pandemic has interrupted Cyprus’ economic growth, noting that “the state’s response to the crisis was timely, extended and dynamic and bore results.” Left-wing AKEL Spokesman, Stefanos Stefanou said that the government assumptions are “very optimistic” stating that his party fears that the government “will not be able to respond to the difficult equation created by the coronavirus pandemic.” Centre Democratic Party, Parliamentary Spokeswoman, and Committee President Christiana Erotokritou stated that the government’s assumptions are “disconnected from reality”, as it they did not factor in two basis developments, the second wage of coronavirus infections and the termination of Cyprus Citizenship by Investment Scheme, following the revelations by the Al Jazeera network over corruption associated with the scheme. She also stated that her party will vote against the budget if the government fails to provide access to the Republic’s Auditor-General Audit Service over the citizenships given to investors in the context of the scheme. MP of the Green’s Party, Giorgos Perdikis said the party will vote against the budget as does not do enough in the social and environmental dimensions, while other parties expressed concern over the course of the pandemic and its impact on the Cypriot economy.

 

Source: CNA

MORE ON ECONOMY

EC Approves €100 Million Grant For EuroAsia Interconnector

In a landmark decision, the Council of the European Union has approved the ...

Economic Sentiment Indicator Drops by 4.7 points in July

In July 2021, economic sentiment in Cyprus deteriorated as the Economic Sentiment ...

ECOFIN To Approve Cyprus’ €1.2 Billion Recovery And Resilience Plan

The European Finance Ministers will approve Cyprus €1.2 billion Recovery and ...

FROM AROUND GOLDNEWS

   

Hermes Airports Accredited With The Gold Designation By MEECO

Hermes Airports within the framework of the continuous upgrade and implementation of innovative practices in its people management, obtained another ...
   

Diaspora Issues Among The Most Important Tools Of Trilateral Cooperation, Fotiou Says

Presidential Commissioner for Humanitarian Issues and Overseas Cypriots, Fotis Fotiou, said on Wednesday that diaspora issues are among the most important ...
   

Facebook Warns Growth Set To Slow 'Significantly'

Facebook has warned that it expects revenue growth to slow down "significantly" in the second half of 2021. The tech giant saw revenue rise to ...
   

Nicosia's Changes In UNFICYP Resolution Accepted, To Be Adopted Today

Pressure exerted on Britain by all other members of the UN Security Council forced London to accept amendments to the draft resolution on the UN Peacekeeping ...
   

President Anastasiades Receives Honorary Award by AHEPA in Athens

President of the Republic of Cyprus Nicos Anastasiades was awarded the “AHEPA Socrates Award” by AHEPA (American Hellenic Educational Progressive ...
   

Rescueline Acquires Leading Road Assistance Company in Greece Mapfre Asistencia

Rescueline, the largest road assistance provider in Cyprus, has announced the acquisition of the operation of Mapfre Asistencia in Greece, one of the ...
   

Pfizer: 2021 COVID-19 Vaccine Sales Top $33.5 bln

Pfizer Inc., on Wednesday, raised its 2021 sales forecast for its COVID-19 vaccine by 29% to $33.5 billion, and said it believes people will need a third dose ...
   

Action Plan for Circular Economy

The Action Plan for the Circular Economy will have multiple benefits for the environment, the society and the economy, as it has been stressed in a press ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Gold_July
GloriaJeans_300x250px

IMH LTD