The Cabinet approved the first supplemental budget of 2024, totaling €351.3 million, to address increased needs across various ministries.

Finance Minister Makis Keravnos stated after the Cabinet meeting that the most significant expenditures include €103 million for the purchase of medicines and vaccines, and €60 million for increased state contributions to social insurance plans and the General Healthcare System. These contributions stem from the strong performance of the economy, characterized by declining unemployment and increased employment.

He noted that, unfortunately, due to this year's drought, there is a need to purchase water from desalination plants at a cost of €58 million. The water will come from Cyprus's desalination units and will cover both irrigation and general needs.

"We are obliged to allocate a significant amount to meet the needs of our agriculture and other drought-related issues through desalination," Keravnos said.

The Minister also mentioned that €31.5 million will go towards defense, €23 million to meet some requests from the University of Cyprus and the Cyprus University of Technology, and €13.5 million for continuing measures against inflation announced last week.

An amount of €11.1 million is allocated for the recruitment of temporary teaching staff at all education levels to ensure schools operate smoothly in September, and €1.1 million for the employment of assistant escorts for children with special needs.

Additionally, the budget includes €10 million for compensation related to the reopening of the Mia Milia sewage treatment plant, which should have been covered by the Turkish Cypriot side. "Unfortunately, we are taking this on to ensure smooth continuation of sewage treatment," the Finance Minister said.

Furthermore, €2.2 million is designated for support measures for agricultural and livestock products, and €8 million for the Amalthea plan, which will be reimbursed by the EU. These are operational expenses, covering employee overtime for food loading and dispatch.

He also mentioned that the Amalthea plan fund already includes contributions from some countries and is managed by the Ministry of Foreign Affairs.