Cyprus parliament to begin reviewing €14.4 billion budget — Cyprus Mail
In Cyprus, the parliamentary Finance Committee is due to begin reviewing the draft state budget for 2027 on Monday, which provides for €14.4 billion in expenditure. Finance Minister Makis Keravnos is expected to present lawmakers with the spending plan, economic forecasts and the government’s fiscal priorities, Cyprus Mail reports.
The proposed expenditure is 5.1% higher than in 2026, when it amounted to €13.7 billion. Excluding public debt servicing, spending is estimated at approximately €11.1 billion. The government has identified social protection, healthcare, education, infrastructure and economic development as priorities.
Social and defence spending
€820 million has been allocated for social benefits. Healthcare funding is set to total €1.066 billion, 3.7% more than in 2026, while €235 million is planned for education spending, an increase of 13.8%.
€148.8 million has been allocated for road infrastructure, 17.4% more than in the previous year. Capital expenditure is expected to reach €594.5 million, including for public buildings, roads and other infrastructure facilities. Projects include the new Cyprus Museum, the Paphos–Polis Chrysochous road, the Deneia–Akaki–Astromeritis road and a new Legal Service building.
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Spending to strengthen defence is planned at €430.15 million, compared with €176.8 million in 2026. This is part of a €1.28 billion programme for 2027–2029 that provides for spending on military equipment and infrastructure.
Government forecasts
The government forecasts Cyprus’s GDP will grow by 2.9% in 2027, with inflation at 2.5%. According to Keravnos’s estimate, unemployment will stand at around 3.8%, public debt will fall to 45.2% of GDP by the end of the year, and the budget surplus will reach approximately 4% of GDP.
At the same time, these figures differ from the government’s previous September forecasts, which projected an overall surplus of 2.8% of GDP and public debt at 46.6% of GDP. The review of the budgets of individual ministries will continue until November 16, while the final three-day parliamentary debate and vote are scheduled for December.
