[BBATTACH=full]22008[BBATTACH]
[BBquote]Significant uncertainties due to pandemic, says Finance Committee in report on 2022 budget[BBquote]
[BBp]The uncertainty that characterises the projections on which the 2022 state budget is based due to a possible new pandemic outbreak is a key feature highlighted in the Parliamentary Finance Committee's report on the 2022 state budget.[BBp][BBp]It also notes the uncertain but positive medium-term outlook for the economy and the need for sustainable economic growth and proper implementation of the Recovery and Resilience Plan.[BBp][BBp]According to the Committee's conclusions, the Cypriot economy, like the European and global economy, remains highly dependent on the course of COVID-19. It is the wish of all parties to smooth the impact of the health crisis on the Cypriot economy as soon as possible and put it back on a sustainable growth path.[BBp][BBp]It is also stated that the medium-term outlook, based on the Government's forecasts, although characterised by uncertainty, is positive.[BBp][BBp]It is also noted that the sustainable growth of the economy, the reduction of public debt to sustainable levels, the achievement of fiscal surpluses, the protection of consumers' standard of living from potential inflationary pressures, and the safeguarding of citizens' well-being in general should be among the Government's main policy priorities.[BBp][BBp]The promotion of the green economy, digital transformation, research and innovation, the rational and effective management of FDI, the implementation of structural reforms on a sound basis, as well as the implementation of major development projects, it is added, will contribute to the recovery and growth of the economy in the medium and long term.[BBp][BBp]It is also stated that the rational and optimal implementation of the national Recovery and Resilience Plan, the use of European instruments included in the Cohesion Policy Programme 2021-2027 and the financial instruments of the European Investment Fund, in order to promote projects and actions of a contributory nature, will contribute to supporting employment, strengthening entrepreneurship, thus contributing to the growth of the economy.[BBp]
[BBp]All members of the Committee recognise the unprecedented and unique circumstances that the Cypriot economy is facing from 2020 due to the pandemic of COVID-19, as well as the impact it has had on public finances and the real economy. They also acknowledge the uncertainty surrounding the forecasts on which the state budget for 2022 is based due to a possible new outbreak of the pandemic.[BBp][BBp]The majority of the Committee's members highlight a number of issues affecting the course of the Cypriot economy on which they express individual reservations, including the management of MECs, the protection of the main residence and small commercial housing, the high level of public debt and budget deficit, social inequality, the high level of the public debt and the high level of the public deficit, and the lack of a sustainable and sustainable development of the Cypriot economy. They also acknowledge the prospect of the Cypriot economy returning to positive growth rates from 2021, as well as the fiscal improvement observed. Furthermore, some members stress the resilience of the Cypriot economy, the rational use of fiscal margins and access to international markets to meet the financing needs for the pandemic in 2020 and 2021, the improvement in social indicators, the improvement in the credit rating of the Cypriot economy and the rational management of public debt. They also express reservations with regard to the position of the Minister of Finance on achieving full employment conditions soon.[BBp][BBp]Members of the Committee note that the observed increase in the general level of prices, although temporary at European level, raises concerns about its impact on the purchasing power of consumers, taking into account the uncertainty caused by the ongoing outbreak of COVID-19.[BBp][BBp]Members of the Committee express reservations in relation to the levels of social indicators, noting in particular the high proportion of the population close to or below the poverty line.[BBp][BBp]Furthermore, Committee members stress, inter alia, the need to adopt a sustainable growth model on the basis of which all productive sectors of the economy contribute to GDP growth, to implement a targeted social policy including, inter alia, housing policy measures, support for vulnerable groups of the population and mitigation of income inequality in order to ensure decent living conditions, to adjust the level of social benefits in the light of the increase in the price of goods and services, and to adjust the level of social benefits in the light of the increase in the price of goods and services. In particular, some of them express the view that it lacks vision and perspective and other members note that the proposed budget does not address the structural problems of the Cypriot economy in a proper and holistic way. In contrast, other members of the committee express the view that the proposed budget serves the growth perspective of the Cypriot economy.[BBp][BBp][BBb][BBb]The parties' positions[BBb][BBp][BBp]The Democratic Rally states that it will vote in favour of the proposed state budget and strongly supports both the economic policy pursued by the Government and the ambitious reform effort in the framework of the Recovery and Resilience Plan. As the party states in its comments, the proposed state budget for 2022, with primary expenditure of €8 billion, maintains its developmental and social character. Through the budget and without any need for new taxes or other burdens, among other things, the implementation of the ambitious development programme is continued, the ability to pursue an effective social policy is maintained, the implementation of the GESY is supported and an important arms upgrade programme of the National Guard is implemented. The launch of the implementation, through the budget, of the National Recovery and Resilience Plan is also considered extremely important.[BBp][BBp]According to the report, taking into account the funds of the Plan and the Cohesion Policy Fund, as well as the additional private investments that will result from the implementation of the supported projects, the economic impact of the Plan is in excess of €4 billion. As a result of the implementation of the Plan, in addition to the projected increase in Gross Domestic Product, an additional 7% will be added, while the implementation of the Plan's funds will create more than 11 thousand new, well-paid jobs.[BBp][BBp]AKEL says that the government's budget for 2022 is more a rehearsal for the 2023 election campaign than a plan for the future of the country. As it comments, the Anastasiades-Syarmos government "mired in corruption, arrogance and squabbles neither wants nor can provide a vision for Cyprus and its people". He adds that the major problems that concern the majority of Cypriot society - inequalities, accuracy, the deregulation of labour relations, the continuation of divestment - are not being resolved and are not even a concern of the government. "In fact, behind the big words lies the reality, which is none other than the low level of implementation of the development budgets of previous years. One in three projects promised by the Government in the budget are never implemented and remain on paper," it says.[BBp][BBp]The party notes that despite the improvement in economic indicators and the inclusion of increased spending in the state budget for 2022, the Government continues to pursue an economic policy that is to the detriment of the majority of society. It adds that it pursues economic policy without integrated planning, serving selfish interests and failing to effectively address the existing problems of society, thus increasing economic and social inequalities.[BBp][BBp]As stated, AKEL will vote against the budget of the Anastasiades-Syarmos government because the country needs a different course, a real change in policies, priorities, style and ethos of governance.[BBp][BBp]DIKO says that the situation in the economy remains unchanged.[BBp][BBp]AKEL will vote against the budget of the Anastasiades-Syarmos government because the country needs a different course, a real change in policies, priorities, style and ethos of governance.[BBp][BBp]DIKO says that the situation in the economy remains unchanged. It notes that the current international developments, which show a surge in global demand combined with the temporary weakness in the supply of goods and energy, leads to an increase in inflation which has a direct impact on households and small and medium-sized enterprises.[BBp][BBp]It adds that while the decisions of the European Commission promote relaxations to the member states of the European Union in order to curb precision and absorb the shocks in the real economy, the government appears unresponsive.[BBp][BBp][BBp][BBp]It adds that while the decisions of the European Commission promote relaxations to the member states of the European Union in order to curb precision and absorb the shocks in the real economy, the government appears unresponsive.[BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp] It believes that control and transparency are the elements that can ensure that the resulting resources are properly used so that they are channelled for the benefit of the real economy. Recommends the establishment of an Ad Hoc Parliamentary Committee to monitor the processes of utilisation of the Recovery Fund with a key focus on parliamentary scrutiny to enhance transparency in the channelling of funds.[BBp][BBp]ELAM says that after the deposit haircuts, pay cuts, red loans, closure of banking institutions, increase in public debt that we have had in recent years, the health crisis has been added to the mix, further aggravating the situation.[BBp][BBp]Even today, it says, businesses remain closed since the outbreak of COVID-19, while others are struggling to stay open. The State's contribution to workers has been substantial, the ELAM adds, but it has not been able to completely fill the gaps created. It also says that stagnation and instability are the main characteristics of the Cypriot economy today.[BBp][BBp]ELAM says that its economic vision is based on creating new jobs through state initiatives and encouraging investment by entrepreneurs. Automatically, it says, it would reduce State welfare benefits and increase citizens' contributions to the State.[BBp][BBp]It calls for the existence of a Social State that would invest in the primary and secondary sectors, give incentives to young people to work in the country and in their industry, support vulnerable groups of the population, and stand by pensioners, low pensioners, strengthen the strength and deterrent capacity of the National Guard and stop wasting hundreds of millions of euros on accommodation, food, hosting illegal immigrants from taxpayers' money.[BBp][BBp]The EPP says that for yet another year the budget shows the same or roughly the same characteristics of previous years. What was unfortunately not realized in both the 2000-2004 and 2012-2013 crises,as well as the recent pandemic, it says, is that crises not only have consequences, they also offer opportunities for meaningful change and new developments.[BBp][BBp]The coronavirus crisis, it says, confirmed that in the last two years can the
indicators of the Cypriot economy have improved, but not to the extent of creating a climate of confidence and security. All the more so, the enthusiasm observed was not justified, it is said.[BBp][BBp]It is also noted that for another year the budget is essentially a management budget. It notes that no one is questioning the infrastructure projects, but we should not dwell on them alone. As mentioned, development projects of a contributory nature have their own value, they provide the state with revenues with which new projects can be financed in the future. It is unjustifiable for five years' budgets not to include such projects.[BBp][BBp]It is also noted, inter alia, that there is no comprehensive social policy programme, which effectively supports groups of the population that are in a difficult economic situation or face serious problems of a social nature.[BBp][BBp]The Democratic Party says that it is a positive development that the 2022 Budget foresees a significant fiscal correction as it seems that the large losses of 2020 are more than covered. The economy, it says, is slowly returning to positive growth rates, both in this year and the next, leaving behind the negative growth rate of 2020 and much of the negative impact of the pandemic.[BBp][BBp]It points out, however, that the 2022 State Budget has been prepared based on some specific data, some assumptions, some scenarios and some assumptions, which, at the end of the day, may be contradicted. It expresses the view that close and regular monitoring of targets and projections and timely intervention by government departments where and when a deviation is noted is imperative.[BBp][BBp]It also expresses concern that there are additional factors, beyond the pandemic, that add to the climate of uncertainty and states that it is unsure to what extent they have been factored into the preparation of the Budget.[BBp][BBp]Finally, DIPA supports the Recovery and Resilience Plan which reflects the Republic of Cyprus' comprehensive planning in order to make use of the €1.2 billion resources that will be made available to Cyprus for the period 2021-2026 from the European Union's Recovery and Resilience Mechanism.[BBp][BBp]Source: CNA[BBp][BBp]
[BBSIZE=1]Contents of this article including associated images are belongs [BBB]Cyprus Times[BBB]
Views & opinions expressed are those of the author and/or [BBB]Cyprus Times[BBB][BBSIZE][BBSIZE]
[BBurl="https://cyprustimes.com/politiki/ponokefalos-i-pandimia-i-ekthesi-tis-epitropis-oikonomikon-gia-proypologismo-2022/"]Source[BBurl]
[BBquote]Significant uncertainties due to pandemic, says Finance Committee in report on 2022 budget[BBquote]
[BBp]The uncertainty that characterises the projections on which the 2022 state budget is based due to a possible new pandemic outbreak is a key feature highlighted in the Parliamentary Finance Committee's report on the 2022 state budget.[BBp][BBp]It also notes the uncertain but positive medium-term outlook for the economy and the need for sustainable economic growth and proper implementation of the Recovery and Resilience Plan.[BBp][BBp]According to the Committee's conclusions, the Cypriot economy, like the European and global economy, remains highly dependent on the course of COVID-19. It is the wish of all parties to smooth the impact of the health crisis on the Cypriot economy as soon as possible and put it back on a sustainable growth path.[BBp][BBp]It is also stated that the medium-term outlook, based on the Government's forecasts, although characterised by uncertainty, is positive.[BBp][BBp]It is also noted that the sustainable growth of the economy, the reduction of public debt to sustainable levels, the achievement of fiscal surpluses, the protection of consumers' standard of living from potential inflationary pressures, and the safeguarding of citizens' well-being in general should be among the Government's main policy priorities.[BBp][BBp]The promotion of the green economy, digital transformation, research and innovation, the rational and effective management of FDI, the implementation of structural reforms on a sound basis, as well as the implementation of major development projects, it is added, will contribute to the recovery and growth of the economy in the medium and long term.[BBp][BBp]It is also stated that the rational and optimal implementation of the national Recovery and Resilience Plan, the use of European instruments included in the Cohesion Policy Programme 2021-2027 and the financial instruments of the European Investment Fund, in order to promote projects and actions of a contributory nature, will contribute to supporting employment, strengthening entrepreneurship, thus contributing to the growth of the economy.[BBp]
[BBp]All members of the Committee recognise the unprecedented and unique circumstances that the Cypriot economy is facing from 2020 due to the pandemic of COVID-19, as well as the impact it has had on public finances and the real economy. They also acknowledge the uncertainty surrounding the forecasts on which the state budget for 2022 is based due to a possible new outbreak of the pandemic.[BBp][BBp]The majority of the Committee's members highlight a number of issues affecting the course of the Cypriot economy on which they express individual reservations, including the management of MECs, the protection of the main residence and small commercial housing, the high level of public debt and budget deficit, social inequality, the high level of the public debt and the high level of the public deficit, and the lack of a sustainable and sustainable development of the Cypriot economy. They also acknowledge the prospect of the Cypriot economy returning to positive growth rates from 2021, as well as the fiscal improvement observed. Furthermore, some members stress the resilience of the Cypriot economy, the rational use of fiscal margins and access to international markets to meet the financing needs for the pandemic in 2020 and 2021, the improvement in social indicators, the improvement in the credit rating of the Cypriot economy and the rational management of public debt. They also express reservations with regard to the position of the Minister of Finance on achieving full employment conditions soon.[BBp][BBp]Members of the Committee note that the observed increase in the general level of prices, although temporary at European level, raises concerns about its impact on the purchasing power of consumers, taking into account the uncertainty caused by the ongoing outbreak of COVID-19.[BBp][BBp]Members of the Committee express reservations in relation to the levels of social indicators, noting in particular the high proportion of the population close to or below the poverty line.[BBp][BBp]Furthermore, Committee members stress, inter alia, the need to adopt a sustainable growth model on the basis of which all productive sectors of the economy contribute to GDP growth, to implement a targeted social policy including, inter alia, housing policy measures, support for vulnerable groups of the population and mitigation of income inequality in order to ensure decent living conditions, to adjust the level of social benefits in the light of the increase in the price of goods and services, and to adjust the level of social benefits in the light of the increase in the price of goods and services. In particular, some of them express the view that it lacks vision and perspective and other members note that the proposed budget does not address the structural problems of the Cypriot economy in a proper and holistic way. In contrast, other members of the committee express the view that the proposed budget serves the growth perspective of the Cypriot economy.[BBp][BBp][BBb][BBb]The parties' positions[BBb][BBp][BBp]The Democratic Rally states that it will vote in favour of the proposed state budget and strongly supports both the economic policy pursued by the Government and the ambitious reform effort in the framework of the Recovery and Resilience Plan. As the party states in its comments, the proposed state budget for 2022, with primary expenditure of €8 billion, maintains its developmental and social character. Through the budget and without any need for new taxes or other burdens, among other things, the implementation of the ambitious development programme is continued, the ability to pursue an effective social policy is maintained, the implementation of the GESY is supported and an important arms upgrade programme of the National Guard is implemented. The launch of the implementation, through the budget, of the National Recovery and Resilience Plan is also considered extremely important.[BBp][BBp]According to the report, taking into account the funds of the Plan and the Cohesion Policy Fund, as well as the additional private investments that will result from the implementation of the supported projects, the economic impact of the Plan is in excess of €4 billion. As a result of the implementation of the Plan, in addition to the projected increase in Gross Domestic Product, an additional 7% will be added, while the implementation of the Plan's funds will create more than 11 thousand new, well-paid jobs.[BBp][BBp]AKEL says that the government's budget for 2022 is more a rehearsal for the 2023 election campaign than a plan for the future of the country. As it comments, the Anastasiades-Syarmos government "mired in corruption, arrogance and squabbles neither wants nor can provide a vision for Cyprus and its people". He adds that the major problems that concern the majority of Cypriot society - inequalities, accuracy, the deregulation of labour relations, the continuation of divestment - are not being resolved and are not even a concern of the government. "In fact, behind the big words lies the reality, which is none other than the low level of implementation of the development budgets of previous years. One in three projects promised by the Government in the budget are never implemented and remain on paper," it says.[BBp][BBp]The party notes that despite the improvement in economic indicators and the inclusion of increased spending in the state budget for 2022, the Government continues to pursue an economic policy that is to the detriment of the majority of society. It adds that it pursues economic policy without integrated planning, serving selfish interests and failing to effectively address the existing problems of society, thus increasing economic and social inequalities.[BBp][BBp]As stated, AKEL will vote against the budget of the Anastasiades-Syarmos government because the country needs a different course, a real change in policies, priorities, style and ethos of governance.[BBp][BBp]DIKO says that the situation in the economy remains unchanged.[BBp][BBp]AKEL will vote against the budget of the Anastasiades-Syarmos government because the country needs a different course, a real change in policies, priorities, style and ethos of governance.[BBp][BBp]DIKO says that the situation in the economy remains unchanged. It notes that the current international developments, which show a surge in global demand combined with the temporary weakness in the supply of goods and energy, leads to an increase in inflation which has a direct impact on households and small and medium-sized enterprises.[BBp][BBp]It adds that while the decisions of the European Commission promote relaxations to the member states of the European Union in order to curb precision and absorb the shocks in the real economy, the government appears unresponsive.[BBp][BBp][BBp][BBp]It adds that while the decisions of the European Commission promote relaxations to the member states of the European Union in order to curb precision and absorb the shocks in the real economy, the government appears unresponsive.[BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp][BBp] It believes that control and transparency are the elements that can ensure that the resulting resources are properly used so that they are channelled for the benefit of the real economy. Recommends the establishment of an Ad Hoc Parliamentary Committee to monitor the processes of utilisation of the Recovery Fund with a key focus on parliamentary scrutiny to enhance transparency in the channelling of funds.[BBp][BBp]ELAM says that after the deposit haircuts, pay cuts, red loans, closure of banking institutions, increase in public debt that we have had in recent years, the health crisis has been added to the mix, further aggravating the situation.[BBp][BBp]Even today, it says, businesses remain closed since the outbreak of COVID-19, while others are struggling to stay open. The State's contribution to workers has been substantial, the ELAM adds, but it has not been able to completely fill the gaps created. It also says that stagnation and instability are the main characteristics of the Cypriot economy today.[BBp][BBp]ELAM says that its economic vision is based on creating new jobs through state initiatives and encouraging investment by entrepreneurs. Automatically, it says, it would reduce State welfare benefits and increase citizens' contributions to the State.[BBp][BBp]It calls for the existence of a Social State that would invest in the primary and secondary sectors, give incentives to young people to work in the country and in their industry, support vulnerable groups of the population, and stand by pensioners, low pensioners, strengthen the strength and deterrent capacity of the National Guard and stop wasting hundreds of millions of euros on accommodation, food, hosting illegal immigrants from taxpayers' money.[BBp][BBp]The EPP says that for yet another year the budget shows the same or roughly the same characteristics of previous years. What was unfortunately not realized in both the 2000-2004 and 2012-2013 crises,as well as the recent pandemic, it says, is that crises not only have consequences, they also offer opportunities for meaningful change and new developments.[BBp][BBp]The coronavirus crisis, it says, confirmed that in the last two years can the
indicators of the Cypriot economy have improved, but not to the extent of creating a climate of confidence and security. All the more so, the enthusiasm observed was not justified, it is said.[BBp][BBp]It is also noted that for another year the budget is essentially a management budget. It notes that no one is questioning the infrastructure projects, but we should not dwell on them alone. As mentioned, development projects of a contributory nature have their own value, they provide the state with revenues with which new projects can be financed in the future. It is unjustifiable for five years' budgets not to include such projects.[BBp][BBp]It is also noted, inter alia, that there is no comprehensive social policy programme, which effectively supports groups of the population that are in a difficult economic situation or face serious problems of a social nature.[BBp][BBp]The Democratic Party says that it is a positive development that the 2022 Budget foresees a significant fiscal correction as it seems that the large losses of 2020 are more than covered. The economy, it says, is slowly returning to positive growth rates, both in this year and the next, leaving behind the negative growth rate of 2020 and much of the negative impact of the pandemic.[BBp][BBp]It points out, however, that the 2022 State Budget has been prepared based on some specific data, some assumptions, some scenarios and some assumptions, which, at the end of the day, may be contradicted. It expresses the view that close and regular monitoring of targets and projections and timely intervention by government departments where and when a deviation is noted is imperative.[BBp][BBp]It also expresses concern that there are additional factors, beyond the pandemic, that add to the climate of uncertainty and states that it is unsure to what extent they have been factored into the preparation of the Budget.[BBp][BBp]Finally, DIPA supports the Recovery and Resilience Plan which reflects the Republic of Cyprus' comprehensive planning in order to make use of the €1.2 billion resources that will be made available to Cyprus for the period 2021-2026 from the European Union's Recovery and Resilience Mechanism.[BBp][BBp]Source: CNA[BBp][BBp]
[BBSIZE=1]Contents of this article including associated images are belongs [BBB]Cyprus Times[BBB]
Views & opinions expressed are those of the author and/or [BBB]Cyprus Times[BBB][BBSIZE][BBSIZE]
[BBurl="https://cyprustimes.com/politiki/ponokefalos-i-pandimia-i-ekthesi-tis-epitropis-oikonomikon-gia-proypologismo-2022/"]Source[BBurl]
