Cyprus state budget for 2027 proposes 14.4 billion euro spending

The Cypriot government has submitted its 2027 state budget to the House of Representatives, detailing total planned expenditures of 14.4 billion euros. This represents an increase of approximately 697 million euros, or 5.1%, compared to the approved 2026 budget. Key fiscal priorities focus on social welfare, personnel costs, and national defense, with transfer payments accounting for nearly one-third of the total budget at 4.49 billion euros.

Local authorities are allocated 190.8 million euros within the 2027 budget. These funds are designated for municipal and community services, including road maintenance, salaries and pensions for current and former community leaders, and compensation for lost revenue from development licensing. Additionally, the budget allocates 2.3 billion euros for social benefits, 1.7 billion euros for contributions to Social Insurance and the General Health System (Gesy), and 399.4 million euros for the European Union budget. State universities are also set to receive 236.6 million euros in funding.