The Christodoulides Government’s first Budget with deficits and imbalances
Statement by AKEL MP Andros Kafkalias after the meeting of the Parliamentary Finance and Budget Committee
23 October 2023
The first Budget of the new government has been presented with deficits and imbalances, which ignore society’s real challenges and needs. Challenges and needs such as:
- Protection with comprehensive policies to confront price increases,
- Boosting available income and stimulating consumption,
- Supporting small and medium-sized enterprises, which constitute the backbone of the Cyprus economy,
- The absence of comprehensive proposals for affordable housing,
- Support for borrowers, given the high cost of borrowing and the heterogeneous legislative framework in favour of the banks in relation to foreclosures,
- Provision of support for families, especially young parents.
At the same time, we must note that the sectors of the economy that have benefited from additional profits as a result of the developments are not addressed. I am referring, of course, to the taxation of exorbitant profits of the energy companies and banks.
In addition, despite increases in social benefits, the available income of vulnerable groups of the population is not increasing, while the crucial issue of an adequate supply of affordable housing is not being addressed.
As far as the state’s developmental policy is concerned, while there are resources available – the amount of money the state has collected from windfall revenues, price increases and taxes is known, nonetheless these resources are not being channeled effectively into the economy. Distortions in the internal energy market continue to exist, without society being protected from global fuel price increases.
AKEL, responsibly, without ignoring the need for fiscal stability, will continue to study each Ministry’s budgets and will submit specific proposals and suggestions.
