Public Entities Including CyBC Secure Budget Approval
In a significant move for Cyprus’s public sector, the House plenum has successfully approved the budgets for four key public-law entities. Among the organizations receiving the green light for their 2024 financial plans are the Natural Gas Public Company (Defa) and the Cyprus Broadcasting Corporation (CyBC).
Joining Defa and CyBC in fiscal readiness, the RES and Energy Conservation Fund, along with the Digital Security Authority, have also had their budgets sanctioned. This timely approval ensures that these entities can continue their operations without financial interruption, as they are now able to move beyond the restrictive ‘twelfths’ system that was in place for January and February. This system allowed for limited monthly expenditures based on the previous year’s budget, a stopgap measure that expired at February’s end.
With 41 of the 43 semi-governmental organizations now having secured budget approval, only the Technical University of Cyprus (Tepak) and the Office of the Commissioner for Electronic Communications and Postal Regulation remain. Tepak, in particular, faces an imminent payment freeze as its budget is unlikely to pass before the next House plenum.
Defa’s approved budget outlines €38.4 million in expenditures against €32.8 million in projected revenues. However, certain costs related to legal fees and consultant payments have been earmarked by the House, requiring Defa to provide further justification before these funds can be released. Additionally, parliament has endorsed Defa’s request to hire 36 new staff members, a move that aligns with its exclusive mandate as Cyprus’s sole natural gas importer and distributor.
The organization’s revenue streams include a €12 million state grant and €20.5 million from the European Union’s ‘Connecting Europe Facility’ to support the LNG terminal project at Vasiliko, which is nearing completion at 80 percent.
As for CyBC, its budget of €39.3 million has been set, with payroll expenses accounting for €26.7 million. The approval of these funds is expected to alleviate tensions within the broadcaster, where staff unions had previously threatened strikes over concerns regarding March salaries. Despite this progress, CyBC faces a challenge as all its bank accounts remain frozen due to a court order.
