Government to freeze ministries’ budgets until 2018

By Stelios Orphanides

The finance ministry, which aims at generating a primary surplus of 2.5 per cent of gross domestic product in 2016 and 3 per cent for both 2017 and 2018, said that it has set a cap on government expenditure budgets for the next three years.

“By taking into account the revenue estimations as well as budgetary targets, the overall upper spending cap for the central government is set at €6,050m, €6,100m and €6,150m for 2016, 2017 and 2018 respectively,” the finance ministry said in its fiscal policy strategic framework for 2016 to 2018. In absolute figures, the primary surpluses aimed for 2016, 2017 and 2018 are estimated at €439m, €550m and €532m. The central government’s expenditure last year was €6,621m and is projected to drop to €5,950m in 2015.

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