A warm request to the Ministries and state services, during the preparation of the state budget of 2023 and the medium-term financial framework 2023-2025, to observe the maximum expenditure ceilings set by the Council of Ministers "in order to avoid the risk of budget derailment". Minister of Finance Konstantinos Petridis.
The request is conveyed by the General Director of YPOIK, George Pantelis, in an urgent circular to the Ministries, Undersecretaries and independent services, after the approval of the Strategic Fiscal Policy Framework by the Council of Ministers, which sets the expenditure ceilings.
"Despite the difficulties due to the coronavirus pandemic and the consequences of the war in Ukraine, macroeconomic stability, the maintenance of sound public finances, the competitiveness and resilience of the Cypriot economy continue to be our main goals, with the ultimate goal of creating of progress of our homeland ", says Mr. Pantelis in the circular.
At the same time, Mr. Pantelis warns that in case the expenditure ceilings are exceeded, the Ministry of Finance will adjust the expenditures to the limits that have been set. "In the particularly difficult fiscal environment and the uncertainty that prevails in relation to the Russo-Ukrainian war, which during the duration, the adverse effects on the Cypriot economy will become more obvious, the Ministry of Foreign Affairs in cases of large discrepancies will retain the right to request re-submission of the budget proposals ".
Besides, Mr. Pantelis highlights as "catalytic importance" for the economy the absorption of so many funds from the multiannual financial framework as well as from the National Plan for Recovery and Sustainability.
Source: KYPE