Nicosia: The 2026 state budget is a growth budget and continues to maintain the resilience of the economy, Finance Minister Makis Keravnos said on Thursday while presenting the budget to President of the House of Representatives Annita Demetriou. The House President noted the importance of the budget having surplus and growth and added that the debate in Parliament begins on October 13.
According to Cyprus News Agency, the Finance Minister emphasized that the budget is designed to sustain the resilience of the economy by ensuring necessary surpluses. This financial strategy aims to reduce public debt, unleash the potential and strength of the economy, and enhance development, social policy, and security for the citizens.
Demetriou expressed satisfaction with the Finance Minister’s emphasis on social policy, highlighting that the Parliament prioritizes support for vulnerable groups within society.
The 2026 budget amounts to pound 10.7 billion, excluding amortization expenses. Revenue for 2026 is estimated at a total of pound 12,681,631,000, while expenses are projected at pound 10,779,960,000. Additionally, there is a provision of pound 2,274,500,000 for loan repayments and pound 665,200,000 for interest, bringing the total expenses to pound 13,719,660,000.
The Minister of Finance noted that since 2024, the state budget has been prepared under the new economic governance framework established by the European Commission. As an EU member state, Cyprus adheres to these rules to support society, the country, and its citizens amidst regional conflicts and the ongoing war in Ukraine.
Furthermore, the Finance Minister expressed confidence in the timely approval of the tax reform by Parliament, which is anticipated to be implemented by January 1, 2026, despite the Parliament’s busy schedule.