I presented today, before the Parliamentary Committee on Labour, the Budget Proposal for 2023 and the Medium Term Fiscal Framework for the three-year period 2023-2025 of the Ministry of Labour and Social Insurance.
Both the Budget and the three-year financial framework aim to implement our Ministry's vision to achieve full and quality employment, to ensure a minimum wage and a fair pension that provide a decent standard of living for citizens, to enhance safety and protect the health of all workers and to ensure labour peace.
At the same time, our Ministry, through the implementation of its Budget for 2023, is expected to contribute to the achievement of the Government's overall objectives for the well-being of citizens, for keeping the economy on a path of sustainable growth and for addressing the challenges created by the successive economic crises.
During the presentation, I had the opportunity to pay due tribute to my predecessor, the late Zeta Aimylianidou, who with her skills and determination turned the Anastasiades Government's vision of a welfare state into reality.
I also had the opportunity to mention important reforms implemented this year that are expected to change the labour map of our country, for the benefit of workers and the economy.
By way of indication only, I mention, first and foremost, the establishment of the National Minimum Wage, the digital transformation of Departments and Services of the Ministry of Labour, the three-year National Disability Action Plan, the harmonizing bill on parental leave, and the end of reassessments of children entitled to disability benefits until they reach adulthood.
Regarding our Department's 2023 Budget, I pointed out to Committee members the 6.5% increase over the 2022 Budget. In real terms, this is an increase of €38 million, from €583 million to €621 million, not including co-funded projects. With the inclusion of co-financed projects, our Budget for 2023 will amount to €657 million.
For 2024 and 2025, the Budget is expected to increase even more, to €692 and €720 million respectively, excluding co-financed projects.
Of our total 657 million euros of budgeted expenditure for 2023, 28% relates to social benefits, sponsorships, projects and projects, 4% relates to salaries, 66% relates to the expenditure for the General Government Contribution and 2% relates to net operating expenditure.
When it comes exclusively to social benefits, sponsorships and support projects for our fellow citizens, more than €180 million is expected to be allocated through the 2023 Budget. A detailed description of the expenditure by category has been provided to Members of Parliament as part of a multi-page briefing note.
At this point, I should note that, with the establishment of the State Ministry of Social Welfare in 2021 and the transfer of the Social Welfare Services, the Welfare Benefits Management Service and the Department for the Social Integration of Persons with Disabilities from the Ministry of Labour to the State Ministry, a significant part of the funds to support groups of our fellow citizens have been transferred to it.
With regard to the implementation rates of our Budget, I should point out that these are quite high, with this year's implementation rate expected to be around 96%.
Our Ministry's contribution to the implementation of the National Plan "Cyprus__Tomorrow", the related Recovery and Resilience Plan and the Thaleia Programme is significant, with the implementation of projects and reforms worth €170 million over the next five years, aiming at the green and digital transition to an inclusive Europe.
As regards the priorities set by our Ministry, in the context of the implementation of its Budget for 2023 and the Medium Term Financial Framework for 2023-25, I note that these have been identified and selected following a thorough study of its six Departments and Services and their overall assessment by the Central Administration, always in cooperation with the Departments. I list the most important of these priorities. [*]Reform and modernization of the Social Security System. [*]Reform the pension system to ensure adequate income for pensioners and correct distortions. [*]Review and revise the Strategy for the Employment of Third Country Nationals. [*]Introduce legislation to regulate teleworking. [*]Effectively tackle undeclared work. [*]Promote safe and healthy workplace conditions. [*]Further digital transformation of departments and services. [*]Establishment of a Call Centre to serve citizens. [/LIST]
In the above context, during the presentation I also referred to individual but important objectives of our Ministry's Departments and Services for 2023, the implementation of which will contribute to the realization of the overall objectives. Some of these individual objectives are. [*]The digitization of applications and the simplification of the examination procedures, by the Social Security Services. [*]The extension of the coverage of self-employed workers by the Social Security Services. [*]The training and employment of Turkish Cypriot citizens by the Labour Department. [*]The strengthening, protection and monitoring of the implementation of the National Minimum Wage, by the Department of Labour Relations. [*]The implementation of the Strategy for Safety and Health at Work, in relation to the corresponding European Strategy, by the Labour Inspection Department. [*]The organisation of postgraduate programmes in Business Administration and Public Administration, by the Productivity Centre. [/LIST]
During the presentation, I also informed the members of the Committee about dozens of other policies and reforms of the Ministry of Labour, which are listed in detail in the above-mentioned note.
Before closing, I would like to thank the Director General, the Directors of the Departments and Services and all the staff of the Ministry of Labour and Social Security for their decisive contribution to the effort to implement our vision.
For the presentation of the Minister of Labour click here.
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