Annita slams government over ‘inelastic spending’ in state budget

Disy leader Annita Demetriou lambasted the government on Wednesday, saying its proposed budget did not rise to the challenges of the day and contained “inelastic spending, horizontal rises and untargeted measures”. Speaking at a press conference, Demetriou said the government’s fourth budget “lacks a development and reform vision” and was more about managing problems than planning for the future. Today, problems that must be addressed are inflation and the high cost of living, compared to unemployment, public debt and economic instability in the past, she said. Inflation and the high cost of living, she pointed out, will persist, despite positive economic indicators. A positive growth rate, Demetriou explained, could not address the cost of housing and starting a family. Through its budget, the government supported high earners rather than those on low incomes, Demetriou said. Demetriou presented her party’s priorities, including the need for more investments in the digitisation of the state and the digital economy to increase productivity, the downsizing of the civil service, improved services for individuals and businesses, and pushing the cost of bureaucracy downwards. She said more investments were needed in research and innovation, development projects and infrastructure, to improve the quality of life and reduce the cost of living. “Instead of expediting major projects and infrastructure, we are cancelling them or they are being carried out slowly. Accelerating development projects would lead to an increase in jobs and incomes, would strengthen the competitiveness of the economy in the medium term,” Demetriou said. Other projects left behind are addressing traffic congestion and local authority development works, she added. Demetriou also spoke of the need for “a real pension reform” that would improve pensions while securing the viability of the social insurance fund. Disy, she said, also encouraged investments to reduce the cost of energy for individuals and businesses, particularly with photovoltaics and energy storage systems. Other Disy priorities include withdrawing old vehicles, expanding intercity bus routes, encouraging remote work, further tax relief, the implementation of the all-day schools, improvements to the childcare plan, better child, student, single-parent and disability benefits, and measures to address the housing crisis. Demetriou also called for measures to support the farming sector which is still reeling from increased production costs, rationed irrigation water and the foot and mouth outbreak. “We are not asking for a continuous increase in spending […] We are asking for the better distribution of spending,” Demetriou said. She explained that Disy did not disagree with the essence of the budget, but with the prioritisation of spending.