THE FINANCE Ministry has moved ahead with a series of budgetary cuts in all the ministries, in its bid to meet EU requirements for maintaining the island’s deficit at 4.5 per cent by the end of this year.
The Justice Ministry appears to be the hardest hit, with a 20 per cent reduction in funds compared to last year.
Cuts have been made in fuel funding – even for helicopters used in emergencies – maintenance of electrical appliances, cars and telecommunications, but also funds for policemen’s uniforms.
Stefanos Prodromou, a tailor in Old Town Nicosia, yesterday explained that he – along with five or six other tailors – take the policemen’s measurements, which are then sent off to a factory in Greece to be tailored.
“In the old days, they used to use (menswear shop) Jet, but now that no longer has a franchise in Cyprus, so they come to us now to get measured,” Prodromou explained. “They are then sent to Greece where the uniforms are made in a factory.”
For years the state has been planning to build a new Justice Ministry building, new police headquarters in Nicosia and a new central fire station in Limassol.
But these works combined – estimated to cost around €50 million – have now been postponed until 2013 the soonest. Then there are the three police stations that are close to collapse; the police force’s request for 37 new vehicles ahead of Cyprus taking over EU presidency in the second half of 2012 and the coastguard’s lack of rescue dinghies.
Significant cuts have been made in the amounts available for trips abroad. The Finance Ministry has decided that only trips related to the European Union will be funded by the state.
Ministries aren’t the only ones facing cuts. Recently, the Finance Ministry sent a circular memo to parliament, calling on semi-government organisations – such as the Cyprus Telecommunications Authority (CyTA), the Electricity Authority (EAC) and Sports Association (CSA) – to submit budgets that include a series of measures that will save money.
The ministry specifically requested a temporary freeze on new job positions, no promotions until further notice and in some cases, there are proposals for a two per cent reduction in work hours.
The ministry is also calling on SGOs to cut regular and operational costs by 5.0 per cent. It appears the only expenditures that have been left untouched are those that have to do with legal obligations, as provided in collective agreements.
