Finance Minister Makis Keravnos expressed his optimism on Monday concerning the approval of the 2026 state budget by the Cyprus parliament. With discussions already underway in the House finance committee, Keravnos stands confident in the budget’s ability to gain majority support, projecting a scintillating economic horizon for the nation.

A Positive Economic Outlook

The proposed budget outlines government revenues projected at €16.49 billion, marking a notable 4.5% increase compared to 2025. Meanwhile, expenditures are set at €15.36 billion, reflecting a 5.3% rise year-on-year. According to Cyprus Mail, this financial blueprint has garnered approval from most finance committee members, underscoring a sense of stability and growth potential within the national economy.

Political Debates and Concerns

As the debate continues, the ruling Disy party praises the economy’s positive trajectory yet cautions against an unchecked public sector payroll. Akel has voiced a strong critique, focusing on the need for a robust social program, positioning themselves as the primary opposition to the budget’s approval. On the other hand, parties like Diko and Edek have highlighted certain risks, such as housing affordability, but generally align with the proposed budget’s strategic focus.

On the Horizon: Tax Reform

Keravnos also highlighted upcoming discussions around tax reform, aiming to balance economic growth with a fairer distribution of tax burdens. These reforms are pivotal in maintaining the momentum of Cyprus’ economic expansion.

Expert Opinions on Defense and Social Welfare

There is a growing call, especially from far-right Elam, for greater defense spending and a well-rounded welfare state, while others commend the budget’s capacity to consolidate economic foundations without drastic shifts in policy direction.

With the parliamentary vote imminent, all eyes are on Cyprus as it navigates this pivotal financial juncture, buoyed by hope and tempered with caution. As stated Cyprus Mail, the final decision will set the tone for the nation’s fiscal policies for years to come.