‘Vital’ that 2021 revised budget be accepted

The government on Tuesday submitted to parliament the amended state budget for 2021, along with a plea to lawmakers to pass the bill so as not to jeopardise the coronavirus-related relief earmarked for businesses and households.

The revised budget provides for some €339 million in additional spending compared to the bill tabled in December – which the House rejected by a majority vote.

In an accompanying letter, Finance Minister Constantinos Petrides conveyed to parliamentarians the president’s appeal that they fast-track the new budget bill and pass it as soon as possible.

“It is vital that the 2021 budget bill be accepted and passed by the House plenum, as this will ensure the smooth functioning of the state, support for workers and businesses, as well as implementation of actions to implement the [EU] Recovery and Resilience Facility,” Petrides noted.

“Non-passage of the bill will prevent us from tapping the money markets in order to finance actions needed to support the economy;” he added.

The bulk of the extra expenditures – €220 million – consists of appropriations for relief and support to businesses and households hit by the coronavirus-related restrictions.

Another extra €136 million concern government amendments to the original bill.

Some €21 million overall has been shaven off from other line items.

Regarding the demands of opposition parties – such as introducing a statutory minimum pension and a minimum wage – the government promised to consider these in the future.

The government did take on board a demand posed by socialists Edek, extending the deadline to settle outstanding planning issues until the end of 2022.

Via a scheme to be promulgated, premises owners will also be able to change the use of a building, and legalise mezzanines for shops up to 80 square metres.

The government needs Edek’s three votes in parliament to get the budget passed.

However the administration did not satisfy other suggestions made by the parties, such as that seeking legislation enabling borrowers to set aside ongoing foreclosure proceedings if they disagree with the lender’s estimates.

This could not be done for loans where foreclosure litigation is already underway in a court, the government said.

But for new loans – those for which no court decision exists – borrowers may challenge the amount owed with the Financial Ombudswoman; and if the latter agrees with the challenge, borrowers can secure a court order preventing a bank from moving ahead with foreclosing.