Finance Minister Makis Keravnos will present the state budget for 2027 to the House Finance Committee on Monday.
At the meeting, scheduled to begin at a quarter past nine in the morning, the Minister of Finance will analyze government revenues and fiscal indicators and present the country’s economic policy and fiscal situation country.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Subsequently, based on current planning, the Chairman of the Fiscal Council will speak about the sustainability and resilience of public finances, and then the Governor of the Central Bank will take the floor to analyze the economic situation and offer his assessments.
Discussions and analyses of the budgets of all ministries and other government agencies and institutions are scheduled to conclude on November 16. Following that, three days of debates in the Plenary will follow in December, featuring speeches by party leaders and representatives, culminating in the passage of the budget.
The budget in detail
The budget provides for total expenditures of €14.4 billion, compared to €13.7 billion in 2026, further strengthening the country’s growth trajectory and its ability to implement key social and development policies.
Particular emphasis is placed on supporting society, with €820 million allocated for social welfare benefits, thereby strengthening the social safety net and providing support to those most in need.
Significant resources are also directed toward key areas of public policy. Specifically, €1,066 million is allocated for Health, an increase of 3.7% compared to 2026, as well as €235 million for Education, an increase of 13.8% compared to the previous year. These investments support the ongoing improvement of health and education services for the benefit of citizens.
At the same time, €148.8 million is earmarked for road network projects, an increase of 17.4% compared to 2026, accelerating the implementation of major infrastructure projects throughout Cyprus.
As announced by the Presidency, the approval of the 2027 State Budget comes at a time when the Cypriot economy continues to perform strongly, with steady growth rates, full employment, a public budget surplus, and a continuous upgrade of the country’s credit rating.
“Responsible fiscal management allows the Government to direct more resources toward social policy, health care, education, and development infrastructure, while ensuring the maintenance of a strong and sustainable economy for the benefit of current and future generations,” the statement reads.
“The budget is balanced and people-centered; we look forward to a productive dialogue with Parliament,” says the Ministry of Finance
Furthermore, in a statement on Sunday, the Ministry of Finance states that the budget is balanced and people-centered and constitutes the most important tool of economic policy, “especially today, when our country needs stability and a clear direction, given the negative geopolitical developments in our region and internationally, as fiscal stability serves as a shield for the prosperity of Cyprus’s citizens and businesses.”
It should be noted that for the third consecutive year, under the administration of Nicos Christodoulides, the budget has shown a fiscal surplus, which is expected to reach around 4% of GDP by 2027, while public debt will continue to decline and is expected to fall to 45.2% of GDP by the end of 2027.
The economy is expected to grow by 2.9%, unemployment to hover around 3.8%, and inflation to fall to 2.5%. These results reflect the consistency with which the Christodoulides government manages public finances. On this stable foundation, the government can support households and businesses where there is a real need.
“The Ministry of Finance looks forward to a constructive dialogue with the House of Representatives regarding the passage of the budget and the maintenance of fiscal balance,” the Ministry of Finance states.
It adds that the passage of the budget will ensure the smooth functioning of the state, economic stability for households and businesses, and the implementation of projects and programs that will strengthen the state’s credibility with its partners and the markets.
