“This way, we will continue the effort to reform and consolidate our economy,” he told a news conference.

The minister acknowledged that funds for development were scarce but stressed that this was what the country could afford. A budget must take into account the country’s real capability, he said, “otherwise, we will simply have a repeat of what happened in previous years; the need for new taxes or the uncontrollable increase of public debt, which hinders growth prospects.”

“To be precise, we want to create the conditions that will eventually allow us, even slightly, to reduce the tax burdens imposed between 2012 and 2012,” Georgiades said.

But he could not give a timeframe and warned against any premature expectations.

“But I am expressing our political direction in the clearest way,” the minister said.

He reiterated that no new taxation would be imposed on the private sector, households, and businesses and if anything, the government would seek to cut taxes if conditions permitted.

The 2015 budget includes increased spending on development – 5.2% — and 5.3% on social spending.

This, according to the minister, was the result of a 3.2% cut in the state payroll and the reduction in debt servicing by 12.4%.

“Our approach is based on the creation of conditions of stability and confidence. This is what the economy needs,” Georgiades said.

The minister said Cyprus was receiving positive messages from foreign investors, a fact that was directly linked to the government’s strategic objective of restoring its credit rating.

He confirmed that a new loan from international markets was among the government’s goals but only when market conditions allowed.

Source: Cyprus Mail