Cyprus News Agency: News in English, 10-05-14

Cyprus News Agency: News in English Directory - Previous Article - Next Article

From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] FINMIN MEASURES FISCAL CONSOLIDATION

[02] PRESIDENT ERDOGANS VISIT CYPRUS ISSUE

[03] GOVERNMENT DEFICIT DOWN TO 76.5 MN

[01] FINMIN MEASURES FISCAL CONSOLIDATION

Announcing the measures, Stavrakis said that 105 out of the 175 million euros will be saved exclusively by actions of the state and without burdening the private sector, 80 million euros by reducing public sectors operating expenses and 25 million euros by reducing the number of civil servants by 1,000 people.

As he added, the number of government officials, non-hourly paid staff, was reduced in April by 490 people.

The measures package, as foreseen in the Stability Programme submitted to the European Commission, provides for the gradual reduction of the fiscal deficit to 3% of GDP (saving 500 million euros) by 2013.

Minister of Finance added that he considers the package as a ``great success``, since the EC accepted that, the fiscal adjustment lasts for four years, pointing out that this means that Cyprus will be given sufficient time to reduce its deficit under 3% without seriously affecting the economy and the taxpayers will not be called on paying huge cost.

The programme includes targeting of social benefits, which will result in 5% state savings for 2010, as most income criteria will be implemented in 2011 and will result to a financial impact of 50 million euros.

Summing up, Stavrakis indicated that out of the 175 million euros savings target for this year, 145 million can be reached (80 million by reducing operating costs, 25 million by reducing the number of public servants, 35 million from fuel taxes and 5 million from social benefits targeting).

The remaining 30 million euro will come from the restraining of the public sectors payroll as well as from the reduction of tax-avoidance.

[02] PRESIDENT ERDOGANS VISIT CYPRUS ISSUE

In statements on Friday, the Cypriot President pointed out that Turkeys stance so far has been an obstacle to the efforts to solve the Cyprus problem and stressed that the presence of Turkish troops in Cyprus is a serious obstacle to the full and real improvement of the Greco-Turkish relations.

Asked what he expects from the Turkish Prime Ministers visit to Athens, which begins Friday, the Cypriot President noted that there are continuous efforts to improve relations between Greece and Turkey, adding ``so far some steps have been made but I believe that the great differences remain.

He expressed hope that the way is paved for a real improvement of the Greco-Turkish relations, under the condition, which was already outlined by Premier Papandreou, that the real improvement of their relations can be achieved with the solution of the Cyprus problem.

[03] GOVERNMENT DEFICIT DOWN TO 76.5 MN

The total revenue of the General Government amounted in the first quarter of 2010 to 1,730.9 mn euro, recording an increase of 9.7% compared to the corresponding period of 2009, while total expenditure reached 1,807.4 mn euro, recording an increase of 5.4%.

On the basis of the preliminary data on the General Government accounts for the period January-March 2010, compiled in accordance to E.U concepts and definitions, the main categories of revenue for the period January-March 2010 were:

The taxes on production and imports reached to 623.6 mn euro (4.3% decrease), of which VAT was 417.9 mn euro (11% decrease), taxes on income and wealth 452.2 mn euro (12.9% increase).

Cyprus News Agency: News in English Directory - Previous Article - Next Article