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Cabinet approves Fiscal Policy Framework 2018-2020

The Cabinet has moved ahead to approve on Thursday the Fiscal Policy Framework for 2018-2020.

Finance Minister Harris Georgiades explained after the Cabinet meeting that it is the framework which delineates the parameters and limits for the budget of 2018 and the next three years.

He said that estimates for 2018 project public revenue €7.44 billion, increased by 3.6%, and public spending of €7.36 billion, that is an increase of 2.9%

Georgiades noted that public revenue continues to record an upward trajectory, due to the rebound of financial activity and growth rates, in spite of the fact that taxation has been significantly lowered. He further argued that the decrease in taxation has given additional thrust to financial activity.

The Finance Minister said that the fiscal policy planning is going ahead within the acceptable limits, with a balanced budget and a drop in public debt expected in 2018 as well.

“In this way we respond to those either here or abroad, who were worried or warning of a fiscal derailment,” said Georgiades.

The Cabinet also decided, as part of its fiscal policy planning to include certain important infrastructure projects: the Paphos-Polis road upgrade, the Lemesos-Saittas new road, and the peripheral highway of Nicosia.

The Finance Minister said that these are landmark projects have been due for decades.

Georgiades added that the funding of large infrastructure projects at the University of Cyprus will continue, in a bid to boost research and development activities in the country.

“We remain committed to a sound fiscal planning which allows the promotion of very important infrastructure projects which our economy needs”, said Georgiades.

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