Funds for subsidising energy prices and hosting Ukrainian refugees included in third supplementary budget

The third supplementary budget for 2022, amounting to €345.1 million, was discussed on Friday in the Finance Committee of Parliament. It includes additional funds to subsidise the increased price of electricity and to accommodate Ukrainian refugees.

According to the introductory report of the Ministry of Finance, €30 million is intended to subsidise the increased price of electricity. Additionally, the coverage of the increased operational costs of various services and departments, due to the increase in energy prices, amounting to €5 million, as well as measures to support agricultural and livestock products, amounting to €4.4 million, are included.

Another €26.3 million concerns the purchase of water for the operation of desalination, while another €11.8 million concerns a sponsorship to the Cyprus Agricultural Payments Organisation.

A fund of €10 million is provided for the accommodation of Ukrainian refugees and an additional fund of €0.8 million for the accommodation of minor unaccompanied children, seeking asylum.

Increased government sponsorship to the University of Cyprus, amounting to €4.7 million, is also included, along with the purchase of medicines and vaccines amounting to €3.8 million.

The supplementary budget also provides for an increase in the General Government Contribution to the General Health System of €150 million and in the General Government Contribution to the Social Insurance Fund of €93.5 million, which concern transactions within the general government, without burdening the fiscal balance.

“Therefore, the fiscal impact of the supplementary budget is limited to €101.5 million, or 0.4% of the GDP,” according to the report.

Previously, two additional supplementary budgets had been submitted, the first amounting to €102 million and the second €172 million.

Source: Cyprus News Agency