Nicosia: The 2026 budget will focus on stability, development, and social policy, announced President Nikos Christodoulides at the beginning of a Cabinet meeting held at the Presidential Palace. The President emphasized that the new budget would be one of stability and perspective, prioritizing a growth-oriented economy as part of the government’s key objectives.
According to Cyprus News Agency, President Christodoulides highlighted that the budget is designed to be surplus-driven with a strong emphasis on social and developmental initiatives. He pointed out significant increases in expenditures aimed at development projects and social policies. Specifically, there is a projected 4.7% increase in development expenditures, building on a 4% rise in 2025. Social benefits are also set to rise by 6.7% in 2026, following a 5.3% increase in the previous year.
The President underscored the importance of reducing public debt, which is expected to decline from 73.6% in 2023 to 52.9% in 2026, one of the lowest rates in the Eurozone. This reduction is anticipated to have positive implications for the economy. Furthermore, education, health, and social welfare remain government priorities, alongside initiatives for digital transformation and the green transition.
President Christodoulides also noted that the country’s growth rate is projected to reach 3.1% in 2026, with unemployment dropping to approximately 4.6%. He compared these figures favorably against other Eurozone states, particularly in the context of ongoing global conflicts. The President reaffirmed the government’s commitment to responsible economic policies, emphasizing that Cyprus cannot afford to take risks in its economic strategies.
In concluding remarks, President Christodoulides asserted the government’s accountability to the Cypriot people and expressed confidence in the results of their responsible governance. He announced that the Cabinet would approve the 2026 budget, marking the administration’s third budget.