News Local 2021 budget rejection puts breaks on fast economic recovery from pandemic-FinMin

2021 budget rejection puts breaks on fast economic recovery from pandemic-FinMin

Finance Minister Constantinos Petrides on Friday described the parliament’s 2021 budget rejection a very negative development that will put the breaks on efforts for the island’s fast economic recovery from the coronavirus pandemic.

The government will table a new budget before parliament in January, he also said.

“The rejection of the budget is a very negative development as regards our huge efforts to address the pandemic crisis, to support the incomes of the citizens and to strengthen the welfare state,” the Minister said.

“This will put the brakes on the government’s efforts for a strong recovery in 2021,” he added.

Despite the rejection, the MPs passed a decision for contingency expenditures, known as ‘twelfths’, for the month of January, so that the state can remain functional.

But the Minister said these expenditures cannot exceed the spending of the corresponding month of the previous year.

And he explained that Thursday’s voting down of the budget means a cut of €2.91 billion in social benefits and of €1.1 billion in health issues. This, he added , is the largest amount concerning the welfare state ever provided in a state budget in Cyprus.

Petrides expressed his satisfaction over the approval of the contingency expenditures, however, as he said that meant reduced expenses compared to what was provided for 2021, since the budget was increased by €742 million compared to 2020.

He also said that voting against the budget also meant a vote against funds from the EU Recovery and Resilience Fund, as all funds earmarked for the year are through the state budget.

He also explained that the state will not be able to sign contracts or start new major projects scheduled for January, noting at the same time that voting against in a very difficult period gives negative messages abroad and deepens financial uncertainty.

In January, he added, the government intends to submit a revised state budget, hoping that the Parliament will vote in favour and restore normalcy and constitutional legitimacy.

House Plenary on Thursday rejected the 2021 state budget by 29 votes against to 24 in favour.


Top Stories

Access to Troodos controlled by Police

The Police announced that on the basis of the Health Ministry decrees aiming to contain the outbreak of the pandemic, tomorrow Sunday, access to...

129 new cases, four deaths announced on Saturday

The Health Ministry announced the death of four persons due to COVID-19. This raises the death toll from the virus in Cyprus to 183,...

Crowding at Troodos; lots of fines by police

Lots of traffic was today seen at Troodos. In order to maintain order but also to monitor that people respected the measures aiming to...

Where to get antigen rapid tests on Sunday 24 January

The Health Ministry announced the following antigen rapid test sites for Sunday, 24 January 2021:   LIMASSOL Parking place Lidl supermarket, Limassol 08:30-16:30 Glafkos Clerides Park, Germasoyia 08:30-16:30 Municipal...

Larry King dies at 87

Larry King dies at 87. Photo taken at his concert at Hard Rock Live in Hollywood, Florida on January 25, 2012. (Reuters)


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...