The total amount that will be spent until the end of August to address inflation pressure and high prices will amount to almost 300 mln euros, which is equivalent to 1.5% of Cyprus’ GDP, Government Spokesperson Marios Pelekanos said on Friday.
In a written statement on the new package of financial support for vulnerable groups of the population to offset the impact of inflation that was approved on Friday by the Council of Ministers, Pelekanos notes that following instructions by the President of the Republic meetings were held chaired by the Minister of Finance with other Ministers and Deputy Ministers to finalise the additional measures to address inflation and rising prices.
He adds that after evaluating the submitted proposals, the Council of Ministers approved the adoption of additional extraordinary targeted measures, amounting to 103 mln euros. This package, he continues, is additional to the measures already taken by the government at the beginning of the inflation pressure, amounting to over 193 mln euros.
Therefore, the Spokesperson says, the total amount that will be spent until 31 August 2022 to address inflation and high prices will be almost 300 mln euros, an amount equivalent to 1.5% of the GDP of the Republic of Cyprus.
He notes that these measures are fully in line with the guidelines of the European Commission but also in accordance with the budgetary capabilities of the state to protect fiscal stability.
Pelekanos points out that the new package includes 14 measures of a total of 103 mln euros.
Measures include, among other things, the adjustment of pensions to take into account the rising inflation, a one-time grant to support vulnerable groups of the population (they cover the period until 31/08/2022), extension of the horizontal and targeted measures for a VAT reduction on electricity until end of August, (reduction of VAT from 19% to 9% for household consumers and from 19% to 5% % for vulnerable groups), extension of themeasure to reduce consumer tax on diesel fuel and fuel for heating until end of August as well as additional measures to support farmers.
Source: Cyprus News Agency