State completes 2027 state budget draft

Economy state budgetTop News State completes 2027 state budget draft State Completes 2027 State Budget Draft Relevant News On this day: U.S. drops atomic bomb on Hiroshima, Japan, killing at least 117,000 in 1945 6 August 2026 State completes 2027 state budget draft 6 August 2026 Union alleges drugs, violence amid understaffing crisis at Central Prison 6 August 2026 Eleftheria Paizanou 6 August 2026 FacebookXWhatsAppEmailPrintViber Cyprus has finished drafting the state budget for 2027 and the Medium-Term Fiscal Framework for 2027-2029, according to information gathered by Phileleftheros, with only political decisions for the coming year still to be added. The budget will go before the Council of Ministers for approval around mid-September and will be submitted to Parliament for debate by early October at the latest. Under the Constitution, the state budget and the budgets of public law bodies must be tabled before the plenary of Parliament three months before the end of the year, meaning by late September or early October. The budgets of ministries, deputy ministries and independent authorities will then go through lengthy sessions of the parliamentary Finance Committee before reaching the plenary for approval within December. It will be the first state budget examined by Parliament in its new composition. Following the recent parliamentary elections, 27 of the 56 MPs are newcomers, meaning the amendments parties table, and the stance they take on the budget more broadly, will carry significant weight for how the government’s proposals are handled in Parliament. Responsible fiscal policy required The government has signalled its 2027 policy direction for months. In preparing the budgets, the Ministry of Finance issued a circular to other ministries stating that responsible fiscal management was essential, citing international economic uncertainty linked to geopolitical and economic developments. The Ministry of Finance also required ministries to avoid costly plans that would burden public finances, making clear it does not intend to submit supplementary budgets for the coming year. A source told Phileleftheros that ministries kept within maximum spending ceilings when preparing their budgets, which will help avoid fiscal slippage, and that most ministries prioritised their goals in line with government policy objectives. Reforms being pursued Under the Strategic Fiscal Policy Framework, which forms the basis for the 2027 budget, the main short-term economic policy priority is limiting the financial impact of geopolitical and economic developments. A series of structural reforms is also being pursued across various sectors of the economy, alongside continued policies to make better use of public sector human resources. The goals for next year are to safeguard the sustainability of public finances while supporting vulnerable groups most affected by geopolitical developments. Economic indicators According to the medium-term outlook for the Cypriot economy and the baseline macroeconomic scenario, real economic growth is projected at 2.9 percent in 2027, up from 2.6 percent this year. Growth is projected at 3 percent in both 2028 and 2029. Inflation is forecast to fall to 2.5 percent in 2027 and to around 2 percent in the following two years. Unemployment is expected to remain around 4.5 percent over 2027-2029. Central government revenue is expected to rise in line with economic activity, reaching around 10.7 billion euros in 2027, 11.1 billion euros in 2028 and 11.5 billion euros in 2029. The maximum spending ceiling was set at 11 billion euros for 2027, rising to 11.2 billion euros and 11.8 billion euros in the following two years respectively. Under the EU’s new economic governance framework, particular weight is given to the growth rate of net primary expenditure at the General Government level. Subscribe to our Newsletter Latest News On this day: U.S. drops atomic bomb on Hiroshima, Japan, killing at least 117,000 in 1945 Union alleges drugs, violence amid understaffing crisis at Central Prison Man arrested in Larnaca airport over €827,400 car import fraud scheme Ex-minister warns Cyprus risks losing EU Presidency’s legacy Christodoulides swears in new government appointees following reshuffle Five terror suspects due in Larnaca court under tight security E-scooter deaths this year match last four years’ total Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.