With total expenditure projected at €9.4b, Plenary approves 2025 state budget

The House Plenary has approved the 2025 state budget with 37 votes in favour and 18 against.

On the evening of 18 December, DISY, DIKO, ELAM, EDEK and DEPA MPs, as well as independent MP Andreas Themistokleous voted in favour.

ELAM clarified that it is voting against all state spending for the management of the migration issue.

AKEL, Green Party-Citizens' Cooperation, independent MP Alexandra Attalidou and socialist MP Costis Efstathiou voted against.

The Parliament also approved more than 38 amendments out of a total of 86 that were submitted by all political parties.

A single amendment provides for a 5% cut in the state's expenses, excluding expenses for the purchase of water, medicines, medical supplies, payment of rent, lighting, heating, fuel for non-office spaces, the national mechanism for women's rights and the framework for promoting the implementation of the Health Scheme.

The voting took place in the presence of the Minister of Finance and other Ministers and Deputy Ministers of the Government.

The budget incorporated 36 amendments from the Ministry of Finance.

The 2025 state budget records an increase in expenditure and significant changes in revenue and spending categories. Total expenditure is projected at €9.4 billion, reflecting a 3.25% increase compared to the 2024 budget, while total anticipated revenue is expected to reach €11.75 billion, marking a 4.1% rise.

Overall, the total expenditure for the 2025 state budget amounts to €12.93 billion, including €3.53 billion allocated to the Permanent Fund, which does not require legislative approval as it covers fixed state expenses.

Direct taxes are expected to rise by 4.9%, reaching €3.92 billion, while indirect taxes are forecasted to increase by 5.6%, amounting to €4.56 billion. Non-tax revenue shows the highest percentage increase at 10.3%, reaching €1.83 billion.

While personnel expenses are slightly reduced by 1%, operational costs see a significant annual increase of 21.4%. Transfer payments, which include social benefits and grants, rise by 5.3%, and capital expenditure for investments and infrastructure increases by 4%. Conversely, public debt servicing costs is expected to decrease by 18.6%.

The amendments by the Finance Ministry include credit reallocations and staffing adjustments, to ensure the smooth operation of the state machinery. These amendments entail additional spending estimated at €25.9 million for 2025.

(Source: CNA)