NICOSIA, Dec. 14 (Xinhua) -- Cypriot lawmakers on Friday passed the 2019 state budget by a majority vote after the highly partisan parliament blocked reforms of the state bureaucracy and took control of a plan to reduce non-performing loans (NPLs).
After a three-hour voting process that lasted into the night, 30 deputies in the 56-member chamber voted in favor, 24 voted against and two abstained.
The last stage of the three day-debate on the budget was marred by an unprecedented demonstration inside the parliament by people who were protesting against bank foreclosures and poverty.
They hung banners from the balcony of the public gallery, prompting the Speaker Demetris Syllouris to denounce the incident and instruct security to take down the banners and remove the demonstrators from the building.
The incident ended within minutes and no arrests were made.
The governing party, Democratic Rally, which has only 19 seats in parliament, had to rely on other parties to approve the budget, after accommodating some of their demands.
After dozens of amendments, 48 of them coming from the government, the budget revenue came to about 9.5 billion euros (10.74 billion U.S. dollars) and expenditure was kept close to 7.9 billion euros (8.94 billion dollars), leaving a surplus of 3 percent of the total gross domestic product.
The greatest change was that deputies stroke out of an expenditure earmarked for more reforms of the government apparatus, such as the Cyprus Stock Exchange, the government lottery and part of the public telecommunications.
Cyprus brought about an extensive reform of the public sector under the supervision of technocrats from the Eurogroup and the International Monetary Fund, as part of the 2013 bailout of the eastern Mediterranean island.
However, opposition parties which have the majority in parliament prevented the privatization of state businesses.
The left-wing AKEL party spearheaded the drive to block any new privatizations and secured the support of all other centrist and socialist opposition parties.
It also introduced an amendment which was supported by all opposition parties, which in effect gave the parliament the power to implement a plan to reduce NPLs by 3.5 billion euros (3.96 billion dollars) by helping low-income borrowers to repay loans.
Deputies "daggered" 33 million euros (37 million dollars) set aside to help pay the installments of borrowers, meaning that the money cannot be spent unless permission is given by the parliamentary budgetary committee.
The plan, which could reduce NPLs by 17.5 percent, has already been approved by the European Union's Competition Directorate, but deputies want to introduce a scaled system in a way that borrowers with lower family income will receive more subsidies than eligible borrowers with a higher income.
Despite the amendments brought about by deputies, Finance Minister Haris Georgiades said he was satisfied with the passing of the budget, as its approval safeguarded stability and promised positive prospects for the economy.
