The 2016 State Budget and 2016-18 Medium-Term Plan were presented before the House Committee on Financial and Budgetary Affairs on Monday by Harris Georgiades, Minister of Finance.
Both the State Budget and Medium-Term Plan provide for economic growth, Georgiades detailed. In fact, should the island maintain political and economic stability, growth is expected to surpass 1.8% in 2016 and reach 2-2.5% in 2017, he said, stressing that these figures far exceed initial projections made by the country’s Troika of international investors.
In particular, the State Budget, described by the Minister as “balanced”, features increases in development expenditure and does not include any new taxes. In this context, it also aims to create the conditions for maintaining sustainable growth in 2016 and create new jobs and opportunities.
Furthermore, the 2016 Budget provides for revenues, excluding financial flows, amounting to €5,937 million, up 1.3% on revised revenues of €5,859 million in 2015.
Public Debt is Manageable
Noting that the economy will exit its 2013 adjustment programme in several months, the Minister stressed that the country is now able to manage its public debt until 2018, through strategic restructuring moves.
This trend of sustainability will only continue in the future, he said, noting that it is expected to be under 100% of GDP in the coming years.
With this issue now resolved, the high levels of Non-Performing Loans and high unemployment remain the most urgent economic issues to be addressed.
Please Mr. Taxman
Finally, Georgiades turns to the issue of taxation. Cyprus, he told the House Committee on Financial and Budgetary Affairs, is the only bailed-out economy in the EU which has followed its adjustment programme without imposing additional taxes.
Indeed, should state finances continue their positive trend in 2016, the Government will aim to review the current tax regime and possibly announce tax reductions.
However, this will not be undertaken before the parliamentary elections in May 2016, he clarified.
Both the State Budget and Medium-Term Plan provide for economic growth, Georgiades detailed. In fact, should the island maintain political and economic stability, growth is expected to surpass 1.8% in 2016 and reach 2-2.5% in 2017, he said, stressing that these figures far exceed initial projections made by the country’s Troika of international investors.
In particular, the State Budget, described by the Minister as “balanced”, features increases in development expenditure and does not include any new taxes. In this context, it also aims to create the conditions for maintaining sustainable growth in 2016 and create new jobs and opportunities.
Furthermore, the 2016 Budget provides for revenues, excluding financial flows, amounting to €5,937 million, up 1.3% on revised revenues of €5,859 million in 2015.
Public Debt is Manageable
Noting that the economy will exit its 2013 adjustment programme in several months, the Minister stressed that the country is now able to manage its public debt until 2018, through strategic restructuring moves.
This trend of sustainability will only continue in the future, he said, noting that it is expected to be under 100% of GDP in the coming years.
With this issue now resolved, the high levels of Non-Performing Loans and high unemployment remain the most urgent economic issues to be addressed.
Please Mr. Taxman
Finally, Georgiades turns to the issue of taxation. Cyprus, he told the House Committee on Financial and Budgetary Affairs, is the only bailed-out economy in the EU which has followed its adjustment programme without imposing additional taxes.
Indeed, should state finances continue their positive trend in 2016, the Government will aim to review the current tax regime and possibly announce tax reductions.
However, this will not be undertaken before the parliamentary elections in May 2016, he clarified.