Cyprus Cabinet Approves €11.1 Billion State Budget for 2027

Nicosia, Cyprus. Cyprus’ cabinet approved an €11.1 billion state budget for 2027 on Wednesday, forecasting continued economic growth, full employment and a higher fiscal surplus.

The budget, which is about €470 million higher than the one approved for 2026, will be submitted to the House of Representatives for debate and approval in December.

Economic outlook

Finance Minister Makis Keravnos said the government had presented a balanced, development-oriented budget despite an uncertain international environment.

He said economic growth in 2027 was expected to reach about 2.9 per cent, with indications that it could exceed 3 per cent.

Unemployment is expected to remain at current full-employment levels, with the rate continuing to decline, Keravnos said.

Fiscal projections

The government projects a fiscal surplus of 2.8 per cent of gross domestic product in 2027, compared with 2.3 per cent in 2026.

The primary balance, excluding interest payments on government debt, is forecast at 4 per cent of GDP, up from 3.6 per cent this year.

Inflation and parliamentary process

Keravnos said the inflation outlook would be directly affected by fuel prices. The government estimates inflation at around 4 per cent in 2027.

The budget will now proceed to parliament, where MPs are expected to debate and vote on the government’s spending plans in December.