The Plenary of the Parliament approved the supplementary state budget of €345,1 million, which was submitted mainly due to the serious effects created by the war in Ukraine on the Cypriot economy.
49 of the present MPs voted in favor of the bill, while one MP abstained.
The most important expenses concern the increased General Government Contribution to the General Health Plan, amounting to €150 million, increased General Government Contribution to the Social Insurance Fund amounting to €93,5 million, subsidy of the increased charging price of electricity consumption with €30 million, purchase of water for the operation of desalination - €26,3 million, sponsorship to KOAP with €11,8 million and hosting of Ukrainian Refugees with €1 million and minor unaccompanied children of asylum seekers - €0,8 million.
The supplementary budget also includes measures to support Agricultural and Livestock Products, amounting to €4,4 million, the purchase of medicines and vaccines with €3,8 million, increased Social Benefits for Persons with Disabilities based on plans, amounting to €1,4 million.
According to the Ministry of Finance, because a large part of the additional appropriations are intended to cover the increase in the general government contribution to the NHS and the general government contribution to the Social Insurance Fund of €93,5 million, which relate to transactions within the general government, without burdening the fiscal balance, the fiscal impact of the supplementary budget is limited to €101,5 million or a percentage of GDP of 0,4%.
The Plenary rejected AKEL's amendments to remove the funds related to the separation of the Supreme Court and to delete the funds related to the separation of the structure for the management of t/k properties in the Ministry of the Interior.
During the debate, DISY MP Onoufios Koullas said that the supplementary budget demonstrates that the government has the financial capacity to support the policies of the state. "To directly or indirectly support our fellow citizens," he said and referred, among other things, to the increased contribution to the Social Insurance Fund and the increased contribution to the General Health Plan.
In response, the Deputy President of DIKO, Christiana Erotokritou, said that the party will vote in favor of the supplementary budget, criticizing the fact that amid the rising price of energy, the government allocated only €30 million.
"We regret to note that despite the fact that the biggest problem is the cost of energy that threatens households and small and medium-sized businesses with closure, which means more unemployment, the only amount in the supplementary budget is €30 million," he said.
Source: KYPE