Cyprus government submits 2027 state budget to parliament

Finance Minister Makis Keravnos formally submitted the 2027 state budget to House President Annita Demetriou on September 24, 2026. The budget aims to maintain fiscal discipline, projecting a surplus for the general government and an economic growth rate of approximately 2.9% despite unfavorable geopolitical conditions. Total state expenditures for 2027 are set at 14.4 billion euros, an increase from 13.7 billion in 2026, with 4.49 billion allocated for social benefits, local government, and other transfers, including 2.3 billion for social benefits and 3.75 billion for the state payroll.

The document also outlines a reduction in public debt to 45.6% and includes a 25 million euro provision for the Great Sea Interconnector (GSI). Earlier reports from the General Treasury indicated that by the end of August 2026, development expenditures reached 603.3 million euros, representing 37% of the total 1.62 billion euro allocation, while total revenues reached 6.8 billion euros.

The parliamentary scrutiny process is scheduled to begin on October 12, with the final vote expected in December. Minister Keravnos indicated that the government remains prepared to implement additional social support measures if economic conditions require them.