Cyprus’ €14.4bn budget for 2027 goes before House Finance Committee on Monday

Nicosia, Cyprus. Parliamentary scrutiny of Cyprus’ proposed €14.4 billion budget for 2027 begins on Monday, when Finance Minister Makis Keravnos presents the government’s expenditure proposals, economic projections and fiscal objectives to the House Finance Committee. The session is due to start at 9.15am.

Spending increases and funding priorities

Under the proposal, total expenditure would reach €14.4bn, up from €13.7bn in 2026. The increase is approximately €700m, or 5.1 per cent.

Spending excluding debt servicing is put at approximately €11.1bn. The government’s priorities include healthcare, social welfare, infrastructure, education and economic development.

The proposed allocation for social welfare benefits is €820m, in line with the government’s stated commitment to helping households and vulnerable groups.

The cabinet approved the budget in September. At that time, Keravnos said economic policy would continue to centre on fiscal discipline, reducing public debt and achieving sustainable growth.

Economic assessments and parliamentary timetable

Monday’s hearing opens discussions on how public funding will be distributed among ministries, state institutions and government departments for the year ahead.

Keravnos is expected to set out revenue and spending figures, together with fiscal indicators. He will also outline the government’s plans for sustaining budget surpluses, lowering public debt and supporting economic growth.

After his presentation, Andreas Charalambous, chairman of the Fiscal Council, is expected to brief lawmakers on whether public finances are sustainable and resilient. Christodoulos Patsalides, governor of the Central Bank of Cyprus (CBC), will follow with an assessment of economic conditions and Cyprus’ economic prospects.

Scrutiny of budgets for individual ministries is scheduled to run until November 16. A three-day debate in the House plenary, followed by a vote, is planned for December.