Cyprus government submits 2027 state budget to parliament

On September 24, 2026, Finance Minister Makis Keravnos formally submitted the 2027 state budget to House President Annita Demetriou. The proposed budget is characterized by the government as balanced, human-centered, and focused on fiscal discipline, aiming to maintain a general government surplus for the third consecutive year, projected at approximately 4% of GDP.

The 2027 fiscal plan sets total state spending at 14.4 billion euros, an increase from 13.7 billion euros in 2026. Key projections for the coming year include a 2.9% economic growth rate, a reduction in public debt to 45.2% of GDP, an unemployment rate hovering around 3.8%, and an anticipated inflation rate of 2.5%. The budget includes 4.49 billion euros for transfers, such as social benefits and local government support, and 2.52 billion euros for loan repayments. Additionally, 25 million euros have been allocated for the Great Sea Interconnector (GSI) project.

Following the submission, the legislative process begins with parliamentary scrutiny, which is expected to culminate in a final vote in December. Finance Minister Keravnos indicated that the government is prepared to introduce additional social support measures if economic conditions, such as high fuel costs and inflation, necessitate further intervention.