Government to approve 2024 state budget

11:21 - 27 September 2023

Economy

The Council of Ministers is currently convening to approve the state budget for 2024, the first under the government of President Nikos Christodoulides.

Finance Minister Makis Keravnos told CNA that next year’s budget will support growth, promoting investments and projects incorporated in Cyprus’ Recovery and Resilience Plan, will contain the wage bill and employment in the public sector and will record a surplus, with a view to safeguard sustainable growth while complying with the country’s EU obligations.

Amidst continuing rate hikes by the European Central Bank and the uncertainty associated with the continued war in Ukraine, the Finance Ministry has lowered its projection for this year’s growth rate to 2.6% from the previous 2.8% of GDP, while the projection for 2024 has been set to 2.9% from the previous 3%.

Under the Strategic Framework for Fiscal Policy 2024 – 2026, which sets the expenditure ceiling based on the government policy statement, fiscal balance for 2024 was expected to register a surplus of €714 million in 2024 or 2.3% of GDP, while the primary surplus (excluding debt servicing expenditure) was estimated at €1.1 billion or 3.7% of GDP. Cyprus public debt was estimated to decline to 81% of GDP by end-2023 and to drop further to 73% of GDP by the end of 2024. The primary expenditure ceiling for the Central Government (Ministries, Deputy Ministries, Independent Services, including the Parliament) was set at €9.38 billion for 2024.

Government to approve 2024 state budget

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