The budget foresees a surplus of €659 million, corresponding to 2.2% of GDP
Finance Minister Makis Keraynos will deliver on 12 :30 to the President of the House of Representatives Annita Dimitriou the state budget for 2024, the first submitted by the Government of Nikos Christodoulidis.
The budget will be officially submitted during the Plenary session of the Parliament on Thursday.
The budget for 2024 is in surplus. It envisages a surplus of €659 million, which corresponds to 2.2% of GDP.
Development expenditure shows an increase of 12% on an annual basis, social benefits are increased by 15% compared to 2023 and amount to €2 billion, while there is also a hold on the state payroll.
As the Minister of Finance had stated after the budget was approved by the Council of Ministers, the significant uncertainty that characterizes the economic situation, the major challenges for the economy, such as the direct effects of the imposition of new sanctions on Russia and Belarus, were weighed in the preparation of the budget , high inflation, which erodes real incomes and state revenues from reduced consumption, high interest rates, which slow down economic growth and the effects of immigration flows.
“The budget objective of 2024 and the Medium-Term Fiscal Framework 2024 – 2026 is to address the challenges and stabilize conditions for the sustainable development of the economy”, said Mr. Keravnos.
For 2024, the growth rate is predicted to be around 2.9% , while in 2023 it is estimated that the Cypriot economy will register a positive growth rate of 2.5%.
According to the budget assumptions, the rate of unemployment is expected to decline in 2024 to 5.8% from 6.5% in 2023. The budget foresees total revenues of the General Government of €13.2 billion and expenses of €11.8 billion, creating a fiscal surplus of €659 million or 2.2% of GDP, while the primary surplus (excluding of debt service costs) is at €1.09 billion or 3.6% of GDP.
Capital expenditures in relation to the 2023 budget are increased by €135 million. The medium-term target is set the reduction of public debt to 60% by 2026.