Parliament approved the 2026 state budget on Wednesday, with votes in favour from DISY, DIKO, ELAM, DIPA, EDEK and independent MP Andreas Themistocleous. AKEL, the Greens, independent MP Alexandra Attalidou and socialist MP Costas Efstathiou voted against. The budget is the last to be passed by the current House before parliamentary elections in May.
The 2026 budget provides for primary expenditure of €10.7 billion, an increase of roughly €508 million or 5 percent compared with last year. Development spending is projected to rise by 4.7 percent compared with 2025, while expenditure on social benefits is set to increase by 6.7 percent. This includes higher allocations for education, health and social welfare.
A total of 92 amendments were submitted. Among the most significant approved were provisions cutting any expenditure linked to the privatisation or corporatisation of public organisations, state enterprises, government departments and services. Exceptions were made only for spending related to development in the Troodos area, the Cyprus Stock Exchange and the Larnaca Marina.
Other amendments froze funds earmarked for the Vasilikos master plan, for the construction of phase one of Macedonia Avenue, for the southern extension of Akademias Avenue, and for primary road works in municipalities. Amounts relating to housing support, social welfare, construction projects and solidarity fund activities were also withheld pending further scrutiny.
Finance Minister welcomes approval
Speaking after the vote, Finance Minister Makis Keravnos said the government can now proceed with its social and development agenda without obstacles or delays. He described the vote as an important institutional milestone and thanked the House Finance Committee for what he called intensive work under tight timeframes.
Keravnos expressed satisfaction at the budget’s adoption and also thanked parties that voted against it, noting that criticism is valuable for the ministry’s ongoing policy work. He said the approved budget allows the economy to maintain its growth trajectory and enables the implementation of President Nikos Christodoulides’ government programme.
Source: CNA