Cyprus cabinet approves 2027 state budget with focus on fiscal stability

On September 16, 2026, the Cypriot Cabinet approved the state budget for 2027, totaling approximately 11.1 billion euros. Finance Minister Makis Keravnos presented the plan, which reflects a 470 million euro increase over the 2026 budget. The government maintains a strategy of fiscal discipline, projecting a surplus of 2.8 percent of GDP, up from 2.3 percent in the previous year. The primary balance, excluding debt interest, is forecast to reach 4 percent of GDP.

Key priorities of the 2027 budget include national defense, digital transformation, and the green transition, alongside efforts to keep unemployment low and public debt on a downward trajectory. Economic growth is anticipated to reach 2.9 percent, with officials noting the possibility of exceeding 3 percent. The government also emphasized maintaining a social safety net, allocating significant resources to social cohesion policies.

The budget proposal, which also covers the 2027-2029 Strategic Fiscal Policy Framework, is now scheduled for submission to the House of Representatives. Debate is expected to begin in October, with the final parliamentary vote planned for December.