Finance Minister, Makis Keravnos, will present the 2027 state budget to the House Committee on Financial and Budgetary Affairs today, Monday, 12 October.
During the meeting, scheduled to begin at 9.15am local time, the Minister will analyse state revenues and fiscal indicators, and present the country's economic policy and fiscal situation.
Addresses to the MPs will be made also by the Chairman of the Fiscal Council and the Governor of the Central Bank.
Discussions on each Ministry's as well as other services and institutions budget, are scheduled to conclude on November 16. This will be followed in December by a three-day debate in the House plenary session and then the voting of the state budget.
The budget provides for total expenditure of €14.4 billion, compared to €13.7 billion in 2026, further bolstering the country's growth trajectory and its capacity to implement significant 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 support for the most vulnerable.
Significant resources are also directed toward key public policy sectors. Specifically, €1,066 million is allocated for Health, an increase of 3.7% compared to 2026, and €235 million for Education, marking a 13.8% increase over the previous year. These investments support the continuous upgrading of health and education services for the benefit of citizens.
At the same time, €148.8 million is allocated for road network projects, an increase of 17.4% compared to 2026, accelerating the implementation of major infrastructure projects across Cyprus. As announced by the Presidency, the approval of the 2027 state budget takes place at a time when the economy continues to post strong performance, characterized by steady growth rates, full employment conditions, a public finance surplus and continuous upgrades to the country's credit rating.
The government noted that responsible fiscal management enables it to channel more resources into social policy, health, education and development infrastructure, while at the same time safeguarding the maintenance of a strong and sustainable economy for the benefit of current and future generations.
The Finance Ministry said in a press release on Sunday that the budget is balanced and people-centered, serving as the most important economic policy tool, especially at a time when Cyprus requires stability and a clear direction due to negative geopolitical developments in our region and internationally, as fiscal stability acts as a shield for the prosperity of the citizens and businesses.
The Ministry also stressed that for the third consecutive year under the administration of Nikos Christodoulides, the budget shows a fiscal surplus, projected to reach approximately 4% of GDP by 2027, while public debt continues to decline, expected to fall to 45.2% of GDP by the end of 2027.
The economy is projected to grow by 2.9%, with unemployment hovering around 3.8% and inflation easing to 2.5%. These results reflect the consistency with which the government manages public finances. It also noted that building on this stable foundation, it can support households and businesses where there is a genuine need.
The Ministry also underlined that it looks forward to a constructive dialogue with the parliament, pointing out that the voting of the budget will ensure the smooth operation of the state, economic stability for households and businesses as well as the implementation of projects that will bolster the state's credibility among partners and in the markets.
(Source: CNA)
