Debate on budget to begin at House plenary

A three-day debate for the state budget and the medium-term fiscal framework 2024-2026 will begin on Monday during a House plenary session.

The debate will start with a brief overview of the report from the House committee on finance delivered by its head Christiana Erotokritou.

Following that, the leaders and representatives of the political parties will present their positions.

Once the debate wraps up on Wednesday, the House plenary will vote on the budget. Parties have prepared a series of amendments to the state budget, which will also undergo approval or rejection by the plenary on Wednesday.

The budget is in surplus, with a fiscal surplus amounting to 2.2 per cent of the GDP and a primary surplus at 3.6 per cent of the GDP.

The total expenditures included in the state budget for 2024 amount to €13.04 billion. The total revenues of the general government amount to €13.2 billion. A fiscal surplus of €660 million is projected for 2024. The primary balance, excluding debt servicing expenses, is projected at €1 billion or 2.8 per cent of the GDP.

The expenses for which payment approval is sought from the Parliament amount to €8.7 billion.

The government’s amendments to the 2024 budget and the medium-term financial framework 2024-26, submitted by the finance ministry, amount to €66,041,289 for 2024, €30,873,719 for 2025, while 2026 will see a reduction of €1,642,381.

Moreover, in its report on the state budget, the House finance committee reported the desire of all parties to maintain sound public finances in order to respond to future challenges and to further smooth the impact of the Russian-Ukrainian crisis on the Cypriot economy, as well as to address possible consequences of the recent crisis in the Middle East.

The prospects for the Cypriot economy, according to the government’s forecasts, are positive, albeit surrounded by great uncertainty, due to the current geopolitical circumstances.

The report also listed as priorities the sustainable growth of the economy, the further reduction of public debt, the maintenance of fiscal surpluses, the protection of citizens’ living standards from inflationary pressures and the safeguarding of citizens’ welfare.

It is further estimated that the promotion of the green economy, digital transformation, research and innovation, as well as the implementation of major development projects will help the economy’s growth path.

The report finally stated that the implementation of structural reforms, as well as the optimal use of EU instruments, in particular the Recovery and Resilience Plan, will contribute to improving the economy and employment.