Ruling DISY, along with opposition parties DIKO and Solidarity voted in favour, while main opposition party AKEL, EDEK, the Citizens’ Alliance, the Green party, and far right ELAM voted against.

The budget provides for €6.96bln in revenues, up 1.1% from 2016, €7.06bln in expenditure, a 2.3% rise.

GDP for 2016 will be €17.7bln with a growth rate of 2.7%. The government expects GDP to rise to €18.3bln in 2017 with an estimated growth rate of 2.8%.

The fiscal deficit for 2016 is estimated at €52.5mln, or 0.3% of GDP against €105.7mln or 0.6% in 2017.

Parties cut the state’s operational expenditure by 10%, excluding funds for medicines, water, medical supplies, and (DNA) tests carried out by the institute of neurology and genetics on behalf of the police.

They also froze certain items in the budget forcing the government to ask for the legislature’s permission before being able to use the money.

EDEK voted in favour of the budget for education and defence, while the Citizens’ Alliance approved the proposed funds for health and defence. Elam also voted in favour of the defence spending.

Included in the frozen funds were €3.5mln earmarked for the improvement of Tseri Avenue in Strovolos and the main road of the community itself.

Close to €59mln set aside for student subsidies and other similar issues was also frozen, as were monies at the disposal of various ministries for funding events and other projects.

Parliament also froze €3.5mln destined for the purchase of new vehicles for state officials and various government departments.

MPs also voted to compel the state to brief the House finance committee every six months over healthcare spending in Cyprus worth €13.8mln and the €12.5mln set aside to finance treatments of Cypriots abroad.

Opposition parties also cut funds for consultancy services concerning the privatization of state organisations and froze €1mln earmarked for the reorganization of hospitals as part of the implementation of the national health scheme.

Source: Cyprus Mail