The Fiscal Report submitted by the General Accounting Office to the Parliament’s Audit Committee shows increases in many key indicators.
Revenues have risen due to taxation and inflation, along with increases in inelastic government expenditures—such as the public payroll—and a rise in domestic debt.
At the same time, there have been reductions in the implementation of development projects and, consequently, in the corresponding expenditures, a reduction in public debt to 49.8% as of September 30, and a reduction in social welfare expenditures and the Minimum Guaranteed Income.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
ANDREAS ANTONIADIS-Chief Accountant “There has
been a significant increase in recent years, which is linked, among other things, to wage adjustments and the restoration of the ATA to 100%. From 2022 to 2029, the total increase in wage expenditures is expected to reach 60% in nominal terms and 32% in real terms. Recurrent expenditures are largely inelastic, while development expenditures show greater fluctuations due to delays in project implementation.”
CHRYSANTHOS SAVVIDIS—Deputy Chair of the Parliamentary Audit Committee: “While
we invest in computer software to reduce staffing needs and get more work done in the public sector, we see ministries complaining that they are understaffed and cannot complete their tasks on time.”
CHRISTOS CHRISTOFIDES—AKEL Member of Parliament “These
increased financial resources, however, do not correspond to an expanded social and development policy on the part of the government. On the contrary, we are seeing cuts to social benefits, underutilized development funds, and delays in critical infrastructure projects.”
ODYSSEAS MICHAELIDES—Head of ALMA “The
state budget deficits are artfully concealed within the surpluses of the Social Insurance Fund, which the Republic uses to cover the rapid increase in the government payroll.”
Among other things, the Members of Parliament raised the issue of managing revenues from the auctioning of greenhouse gas emission allowances, which exceeded 109 million euros in 2025.
By law, these revenues should be spent on reducing emissions, but the relevant report contained no data for 2025, with Committee members raising concerns about the failure to take the necessary measures.
It should be noted that, to date, approximately half of the funds allocated by the government for the plan have been spent to support livestock farmers affected by bluetongue, while less than half of that amount has been spent to support those affected by the deadly wildfire in the mountainous region of Limassol.
See the report by Neoklis Neokleous:
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