Accra:The Finance Minister, Makis Keravnos, is set to present the 2027 state budget to the House Committee on Financial and Budgetary Affairs on Monday. The session, beginning at 915 a.m. local time, will include an analysis of state revenues, fiscal indicators, and the country's economic policy and fiscal situation. Addresses will also be given by the Chairman of the Fiscal Council and the Governor of the Central Bank.

According to Cyprus News Agency, discussions on the budget for each ministry, as well as other services and institutions, are expected to conclude on November 16. A three-day debate in the House plenary session will follow in December, culminating in the voting of the state budget.

The budget outlines a total expenditure of £14.4 billion, an increase from £13.7 billion in 2026. It emphasizes social welfare, with £820 million allocated for benefits, and directs significant resources to health and education, with allocations of £1,066 million and £235 million respectively. An allocation of £148.8 million for road network projects marks a 17.4% increase from the previous year.

The government has highlighted responsible fiscal management, enabling increased investment in social policy, health, education, and infrastructure development, while maintaining economic stability. The Finance Ministry described the budget as balanced and people-centered, crucial for stability amid negative geopolitical developments.

The budget shows a fiscal surplus for the third consecutive year under President Nikos Christodoulides, projected to reach 4% of GDP by 2027. Public debt is expected to decline to 45.2% of GDP by the end of 2027. The economy is projected to grow by 2.9% with unemployment at 3.8% and inflation at 2.5%. The Ministry anticipates that the budget's approval will ensure the state's smooth operation and bolster its credibility.