Strategic Framework of Fiscal Policy approved by Cabinet

The Cabinet has approved the Strategic Framework of Fiscal Policy that sets the Government’s strategic directions and economic policy priorities for the next three years.

As Minister of Finance Makis Keravnos explained on 8 June, the Framework includes three chapters, the first concerning the broader context of Government's development policy for the period 2024-202".

The second chapter is the fiscal strategy statement that deals with recent macroeconomic and fiscal developments as well as with medium-term forecasts and the medium-term fiscal framework, he continued.

The third chapter, according to Finance Minister, includes an employment policy statement that defines the policy for effective human resources management in the public sector and in the wider public sector. It also sets the framework of fiscal policy objectives and includes policies concerning the improvement of transparency, efficiency, and productivity as well as the further development and utilisation of human resources.

Makis Keravnos stated that the maximum expenditures of ministries, deputy ministries, and independent governmental authorities are determined for the next three years based on these strategies, explaining that these figures will be taken into account for the preparation of the budget of these state institutions for 2024 as well as for the medium-term fiscal framework for 2024-2025.

The Minister of Finance emphasised that the Framework is fully consistent with the Medium-Term Fiscal Framework that Cabinet has already approved and which has been submitted to the European Commission. He also expressed the belief that, as maximum expenditures will be determined based on current fiscal data and in line with the Government’s fiscal discipline approach, this will lead to achieving fiscal goals meaning “stable economic growth and reliability of the Cypriot economy.”

(Source: CNA)