Supplementary budget for CYP 141 mln tabled

The Ministry of Finance has submitted to the House of Representatives a supplementary budget amounting to CYP 112.1 mln, the largest part of which concerns non-recurring expenses. This amount is net of CYP 29.3 mln, which is the amount deducted from the Development Budget that will not be implemented.

The supplementary budget refers to total expenditure amounting to CYP 141.4 mln, CYP 90.6 mln of which concerns non-recurring expenses (CYP 33 mln for land expropriations, CYP 15 mln for VAT returns, CYP 9.8 mln for the purchase of shares in Cyprus Airways, CYP 8 mln for the reconstruction of ‘Artemida’ village in Greece, CYP 5 mln to cover the shortfall of the CTO, CYP 3.5 mln as compensation to workers made redundant at the airports and CYP 3 mln to be given to the Cyprus Football Federation to cover the aid package promised to the premier league football clubs.

Additionally, an amount of CYP 50.8 mln concerns recurring expenses (CYP 25 mln for social cohesion measures, CYP 17.4 mln for purchase of medical services and CYP 8.4 mln for other expenses. The supplementary budget would result in a small deterioration in state finances and cause the fiscal deficit for 2008 to widen above the targeted 0.5%.