PARLIAMENT LAST night voted through the 2013 budget incorporating the terms agreed between Cyprus and its international lenders after marathon speeches made over two days by MPs criticising government policy.
With 51 votes in favour and two against, the plenum passed the austerity-geared annual budget that will see the state spend some €9.5 billion (without factoring in loans) and earn €7.6 billion. Despite voicing their reluctance, the main parties voted in favour, with only the Greens’ Giorgos Perdikis and EVROKO’s Nicos Koutsou voting against.
A large number of amendments were proposed by the parties with 27 in total finally adopted. The government also tabled and had approved a further four amendments, including one adding €29m to the 2013 budget, which will go towards paying insurers of the Vassilikos power plant that was destroyed in last year’s Mari naval base blast.
However, the budget for the Vassilikos insurers, like many other funds in the 2013 budget, was crossed by parliament in yesterday’s session, meaning the House Finance Committee must give its final approval before any of the money can be released.
Two of the government’s amendments refer to a number of exemptions on the hiring freeze for the Education Ministry.
The fourth government amendment includes the target of a 7.25 per cent fiscal adjustment in the new budget.
All proposed amendments tabled by DISY and DIKO were approved, as was one tabled by DISY, DIKO and EDEK, as well as three by DISY, DIKO and the Greens, two by DISY and the Greens, and one by EDEK, the Greens, independent MP Zacharias Koulias and Koutsou.
One DISY-DIKO amendment says that the wage reductions implemented in the state sector should be extended to cover any organisation or institution which gets a state grant covering at least 50 per cent of its budget.
The amendment will impact upon the Natural Gas Public Company (DEFA), the new state hydrocarbons company (KRETYK), the Institute of Neurology and Genetics, the Bank of Cyprus Oncology Centre, the Cyprus Energy Institute, the Cultural Foundation, the Research Institute and the Cyprus Orchestra.
The second amendment provides that staffing of embassies at the Holy See, Rome, Thessaloniki and Brussels can take place without the prior approval of the House Finance Committee.
Another amendment puts a stop to special zero-interest loans for the purposes of state officials purchasing cars.
DISY and DIKO also crossed funds on a number of budgets, including: €700,000 on transferring officials to and from abroad; €400,000 for hospitality purposes; €3m for cultural grants; €4m for research grants; and €2.3m in grants to foreign schools.
A further €64m was crossed for the purchase of shares, including the €1m needed for the share capital of KRETYK, with the rest earmarked for Cyprus’ contribution to the European Support Mechanism.
A €1.9m budget for the construction of buildings abroad was crossed, as well as €15m for the purchase of medical and other equipment, while €5m earmarked for grants to various semi-government organisations was also crossed.
In addition, a further €110m was crossed for rent for the National Guard and €1.79m for development projects.
Funds set aside for social and other benefits for refugees and asylum seekers have also been crossed.
The amendment tabled by EDEK, Koulias and Koutsou crossing €15m on medical purchases was also approved.