Cyprus Finance Minister presents 2027 state budget to Parliament

On October 12, 2026, Cypriot Finance Minister Makis Keravnos presented the 2027 state budget to the House Finance Committee. The proposal outlines total expenditures of €14.4 billion, reflecting a 5.1% increase from the €13.7 billion allocated in 2026. The government projects a fiscal surplus of 2.7% to 4% of GDP and expects public debt to continue its downward trajectory, reaching approximately 46.6% to 45.2% of GDP by the end of 2027. Economic growth is estimated at 2.9%, with unemployment forecast at 3.8% and inflation expected to stabilize at 2.5%.

Keravnos emphasized that the budget is balanced and human-centric, designed to ensure stability amidst geopolitical turbulence in the Middle East and the war in Ukraine. The fiscal plan allocates significant funding for social welfare, health, education, and infrastructure projects, including a 13.8% increase for education and a 17.4% boost for road infrastructure. The Minister also addressed non-performing loans, urging banks to redirect excess liquidity toward productive and investment-oriented sectors.

The parliamentary committee will examine the budgets of individual ministries and state institutions until November 16, 2026. The process will conclude in December with three days of plenary debates and the final vote on the budget.