Cyprus government presents 2027 state budget with focus on stability and defense

On September 16, 2026, the Cypriot government, led by Finance Minister Makis Keravnos, presented the state budget for 2027 to the Council of Ministers. The proposal aims to maintain fiscal discipline and resilience amid geopolitical tensions in the Middle East and Ukraine, while steering clear of austerity policies.

The budget projects total revenues of €16.9 billion against expenditures of €15.8 billion, targeting a surplus of 2.8% of GDP, or approximately €1.1 billion. A key feature of the financial plan is a significant increase in defense spending, with allocations reaching €300 million. Furthermore, the government intends to dedicate over €1 billion to social protection programs to support vulnerable groups and mitigate the impact of rising energy costs and inflation. Public debt is expected to decline further to 47%, and economic growth is forecasted at 2.9%.

Following its presentation to the Cabinet, the budget will be submitted to the House of Representatives by the end of September. The parliamentary discussion is scheduled to begin with a formal presentation by the Minister of Finance on October 12, with the goal of securing final approval by early October.