Cyprus budget to rise to €11.1 billion in 2027

Cyprus’s Council of Ministers has approved the draft state budget for 2027, amounting to €11.1 billion. Finance Minister Makis Keravnos described it as balanced and growth-oriented: spending will increase by approximately €470 million compared with this year’s budget.

According to the Finance Ministry’s estimates, Cyprus’s economy will grow by 2.9% in 2027, while the minister did not rule out growth exceeding 3%. Unemployment will remain at the current level of full employment, with a tendency to decline further — to around 4.5%.

The budget surplus is planned at 2.8% of GDP, compared with 2.3% in 2026, while the primary surplus will stand at 4%, compared with 3.6%. According to the ministry’s calculations, public debt will continue to decline, falling to 46.8% of GDP.

The ministry identifies financial stability, economic resilience and the advancement of reforms amid geopolitical and energy uncertainty as the document’s main priorities. The draft was prepared on the basis of the Strategic Framework Plan for Fiscal Policy.

After approval by the Cabinet, the bill will be submitted to parliament. MPs will vote on the budget in December.