Developments regarding wages and salaries, interest payments, purchases of goods and services, as well as transfer payments played a decisive role in determining the higher realised average annual rate of growth of total public expenditure, 12,5%, compared to the Plan's target, 9,5/%.

The Government's payroll expansion, 10,5% compared to the target of 8,9%, was due to the general increases paid on basic salaries during 1990 and 1991 (4% and 1,5%, target: 0,4% annually), the readjustment of salaries due to C.O.L.A. (4,8%, target: 4,3% annually) and also the higher than originally planned rate of recruitment (2,5%, target: 1%) to cover mainly the needs in the sectors of health, education and defence.

As regards interest payments, the higher rate of growth, 12%, compared to the Plan, 10,6%, was attributed to the higher financing needs of the Government during the last years.

Source: www.kypros.org