Cyprus GDP estimated at -1.6% during 1st quarter of 2012

Cyprus Government's fiscal policy for the year 2010 will be aimed at maintaining the deficits on reasonable levels and supporting the real economy to the greatest possible extent.

Minister of Finance Charilaos Stavrakis told a press conference on Thursday that the fiscal policy will be announced officially, along with the state's budget for 2010, in late September or early October.

The first axis of the Government's policy will be to minimise counterproductive state expenditure, and the second to provide town planning amnesty and the speeding up of issuing title deeds.

Stavrakis said the third axis concerns taxation matters, with the promotion of a series of measures to prevent tax evasion.
The fourth axis will be to improve social benefits and allowances, and the fifth to gradually reduce the cost of the state payroll, without reducing wages or dismissing civil servants.

Stavrakis said the Government has so far followed the right fiscal policy, which has been praised by the International Monetary Fund and the European Commission, adding that this policy has reduced the repercussions of the global financial crisis.
He pointed out that external factors have led to the loss of millions of euros, during a time when the Government had increased public expenditure in order to boost the real economy.

Stavrakis said there has been no decision on halting projects in 2010 and that it was up to the Council of Ministers to approve the state budget, which includes funds for projects.

He added that there were thoughts to postpone some projects, not cancel them, and that priority would be given to projects, which would promote growth and create jobs.

Financial Mirror, August 28, 2009

|||Cyprus government fiscal policy for 2010
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