Stavrakis says measures could cover Cyprus budget deficit

Minister of Finance Charilaos Stavrakis said on Thursday that possible measures to cover the 150 million EUR deficit in the state budget for 2011 were the increase of company tax, the taxation of banks, a revision of immovable property fees for large estate owners, 5% VAT on foodstuff and pharmaceuticals, taxes on tobacco and alcohol, and the restraint of civil servant salaries.

Stavrakis noted that the state budget was a huge step towards the consolidation of public finances, adding that state expenditure was reduced to lower levels than those in 1975.

This, he said, contributed to shrinking the deficit, adding however that there was still a gap of 150 million EUR that had to be covered with additional measures.

The Minister noted that an intensive dialogue has started to draft a comprehensive package of measures to cover the deficit.