Protecting the economy and safeguarding human-centred sustainable development should be at the forefront of economic policy, Finance Minister Makis Keravnos said on Tuesday while speaking at a forum on the economy organised by Akel.
“We have a responsibility and an obligation to maintain a strong economy and to meet our European obligations, but at the same time to deal with serious social issues,” he said.
To exercise an effective social policy, it is necessary to concurrently implement policies that ensure stable and sustainable growth, within the framework of fiscal discipline and financial stability, the minister added, noting that “this is also the constant government policy”.
Regarding tax reform, the finance minister stressed that the goal is the adoption of a transparent and simplified system, with the minimum possible bureaucracy.
“It must also be encouraging to business and at the same time be socially fair, be within the framework of European standards and aim to reduce tax evasion and tax avoidance,” he added.
He also said that the key tool for the implementation of the government’s development programme is the national Recovery and Resilience plan.
“Through the initiatives it comprises, we aim at significant structural reforms and the expansion of the productive base of the economy, utilising research , innovation, technology and above all, the remarkable human resources of our country, which I consider to be our most important advantage.”
On green taxes, Keravnos said it they expected to significantly contribute towards reaching Cyprus’ green goals within the European Union.
With reference to the draft budget for 2024, which was recently submitted to government, he said that it is a developmental budget with a 12 per cent increase in development expenditures, but also human-centred with a 15 per cent increase in social benefits and at the same time, a surplus budget.