ECONOMY

Cyprus gov’t spending to rise only 0.6 pct in 2015

The Cypriot Parliament has adopted a government budget that envisions an increase in spending of only 0.6 percent.

The budget forecasts state revenue of 5.928 billion euros compared with 5.952 billion euros in 2014, with spending of 6.660 billion euros.

The House of Representatives approved the tight spending plan late Tuesday by a vote of 29-26.

MPs from the ruling right-wing DISY, center-right opposition DIKO and the smaller European Party supported the measure, while major opposition communist party AKEL, socialists EDEK and the Greens voted against it.

Cyprus continues to meet its targets under its austerity plan, which has included both tax hikes and sharp spending cuts, as well pledging to privatize some state-owned utilities.

Finance Minister Haris Georgiades promised in his budget speech last week that there would be no more new taxes imposed next year.

He said the budget was “conservative and realistic,” and “we will safely remain within the fiscal targets without the need for new taxes and new spending cuts.”

[AFP]