Investor Presentaiton
Public finances in a solid surplus position
• The government policy is for a growth-friendly fiscal
stance safeguarding the maintenance of robust
primary surpluses supporting a sustained reduction of
public debt. The budget reflects a continuation in the
employment policies adopted by the government and
places emphasis on reallocation of expenditure
towards growth-enhancing activities.
• Since 2016 the fiscal position is positive peaking at
3,2% surplus in 2018. In the next years both
government revenue and government expenditure are
expected to increase primarily due to the introduction
of the national health system. The budget surplus is
expected to fall marginally mostly due to increased
expenditure associated with the gradual abolition of
wage cuts.
• The budget is designed to achieve the medium term
objective of a balanced fiscal position in structural
terms.
Source: Ministry of Finance
Evolution of main fiscal indicators, % of GDP
8
6
4
5,7
4,3
5,3 4,8
4,4
4,1
2
2,6 2,7
3,0
3,2 3,0
2,6
0
0,3 1,8
2,4
2,2
-0,3
-0,4
-2
-1,8
-4
Primary balance
Fiscal balance
-5,1
-6
2013 2014 2015
2016 2017 2018 2019f 2020f 2021f 2022f
Note: The budget outcomes of 2014-15 and 2018 exclude government contributions for the Cyprus Cooperative Bank
Note: "f" denotes forecasts by the Ministry of Finance as of April 2019. All forecasts are based on assumptions and there can be no assurance they will be realised.
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