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Wednesday, May 22, 2024

They ignored the Budget Council on the supplementary budget

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Its President, Mr. Michalis Persianis, expresses concern about the course of government spending

Αγνoησαν το Δημοσιονο μικo Συμβοyλιο για τον συμπληρ&omega ;ματικo προυπολογισμo

The President of the Fiscal Council, Mr. Michalis Persianis, sent a letter to the Ministry of Finance, expressing his disappointment at the Ministry's submission of the Supplementary State Budget to the House of Representatives, citing unilateral discussions and a systematic lack of information. At the same time, he expresses concern about the course of government spending.

The same letter

It was with great disappointment that I was informed by the press about the submission by the Ministry of Finance of the Supplementary State Budget to the House of Representatives. Despite our efforts, including the letter dated 16 May 2023 which was followed by reminders, two of which were in writing, we did not receive any response from your side.

That is why, as you understand, our surprise at the submission of the Supplementary Budget was equally as great as our disappointment.

Several discussions regarding the Supplementary Budget took place between the Ministry of Finance and the Fiscal Council. Unfortunately, these discussions were one-sided and the systematic lack of information from the Board of Directors on the part of the Ministry worries us in relation to the reasons that may lie behind it.

Despite the rather satisfactory performance of the economy, as well as the increased revenues of the Republic which are concentrated in January, the SC has repeatedly expressed concern about the course of government spending. Our concerns were expressed, both in writing, including our letter in relation to the validation of the assumptions of the Stability Program dated 02/05/2023, as well as verbally, in the meeting between us which was not possible to plan until after the submission of the Stability Program.

I repeat that,

  • The course of public finances cannot be countered by the slack created by January's high revenues, which however have since normalized, with the result that the following months will include deficits for the general government.
  • Fiscal space should be preserved to allow potential measures, developmental and social, to be taken at the end of the year without creating fiscal pressure in 2023 and 2024.
  • Fiscal space should also be preserved to accommodate large emerging needs of the Republic in relation to the Digital and Green Transition, with energy and physical security and dealing with emerging risks from the end of this year and the following years.
  • The quality of spending is fiscally just as important as its amount, with coherence between political spending being key to its efficiency.
  • Analyses based on the no policy change scenario do not they reflect the complete picture and are imperfect. Thus, we should resist the temptation of complacency caused through such analyses.

In the midst of a year which is macroeconomically satisfactory and in which the revenues of the Republic remain high, lurks the risk of creating fiscal pressures that will affect the course of the country later and which could have been avoided.

Mutual information, complete and timely, is key to serving the missions of all its institutions and bodies Democracy.

The Board, as you know, is at your disposal to support your mission and work. However, data availability and comprehensive and timely information need to be improved.

Source: www.kathimerini.com.cy

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