The government has submitted to the Parliament a supplementary budget amounting to pound 361 million with an impact of 0.85% of GDP on the government coffers.
This is second supplementary budget submitted this year, with the Finance Ministry noting that the increased expenditure will not affect the fiscal balance, as pound 116 million will be covered by intra-governmental transactions.
The supplementary budget has been approved by cabinet last Wednesday.
In a note to the Parliament, the Finance Ministry said the additional spending is needed for the support the sectors of health, education, agriculture, sport and housing of displaced persons, due to the effects of the war in Ukraine and high inflation.
The largest expenditure concern pound 60 million to cover the increased Cost-of-Living-Allowance (CoLA) in the second half of this year following the renewed transitional agreement between the social partners, pound 60 million for the implementation of co-financed projects and schemes, pound 59 to cover the in cost of desalination, driven upwards due to high electricity prices and pound 56 million as a grant to facilitate the implementation of development projects (pound 46 million) and other operating expenditure (pound 16 million) of the University of Cyprus.
Furthermore, the budget also includes pound 25.4 million for the purchase of a building in Nicosia that will house the Ministry of Labour, pound 18.2 million to cover the cost for the extension of subsidising part of the increase in electricity bills due to high oil prices, pound 15.8 million for the state subsidy to the Cyprus University of Technology (TEPAK) for construction of student halls, pound 15.6 million for the host of displaced persons from Ukraine and unescorted minors which are seekers of international protection, pound 15 million for the purchase of medicines and vaccines against COVID-19, pound 11.5 million for the hiring of temporary employees in education and pound 9.4 million as a grant to the Cyprus Sport Organisation for the construction and renovation of sport installations.
Source: Cyprus News Agency