The state budget for 2024 projects a surplus of €659 million, equating to 2.2% of the Gross Domestic Product. This was approved by the Ministerial Council, with Finance Minister Makis Keraunos emphasizing that the objective of this budget is "to maintain the country's positive economic trajectory for the betterment of our society."

Post the Ministerial Council's session, Mr. Keraunos highlighted a 12% annual increase in developmental expenditures, while social provisions have grown by 15% compared to 2023, amounting to €2 billion. This is in conjunction with the stabilization of public sector salaries.

"The 2024 budget is formulated within the context of the government's previously announced fiscal discipline and with the goal of ensuring fiscal stability," said the Finance Minister.

He pointed out significant factors that played a role in shaping the budget, including: the current economic uncertainties, major challenges for the national economy like the direct impacts from sanctions imposed on Russia and Belarus, high inflation rates eroding real incomes and reducing state revenue due to decreased consumption, elevated interest rates slowing down economic growth, and implications arising from migratory flows.

"Our 2024 budget and the Medium-Term Fiscal Framework for 2024-2026 aim to address these challenges and stabilize conditions for sustainable economic growth," Keraunos added.

He further noted that the nation's economy is expected to continue recording positive growth rates in 2024, with an anticipated growth rate of around 2.9%. In 2023, the Cypriot economy is estimated to register a positive growth rate of 2.5%, which is triple the average of the Eurozone. "These figures clearly indicate our robust economic path, and with this budget, we aim to maintain and further bolster this upward trajectory for the greater good of our society," he elaborated.

According to the budget's assumptions, unemployment rates are projected to decrease to 5.8% in 2024 from 6.5% in 2023. The total revenue for the General Government is estimated at €13.2 billion with expenditures at €11.8 billion, resulting in a fiscal surplus of €659 million or 2.2% of the GDP. The primary surplus, excluding debt service costs, is expected to be at €1.09 billion or 3.6% of the GDP.

"These surpluses are essential to meet our European obligations of reducing public debt to 60% by 2026, and to allow the government to implement its social and developmental policies," stressed Mr. Keraunos.

In addition, Keravnos emphasized that the budget strongly promotes growth. It integrates projects from the Recovery and Resilience Plan and allocates funds for the development of infrastructure and government buildings.

He highlighted that in 2024, development spending is set to increase by 12%, reaching €1.47 billion. Simultaneously, funds for social welfare will rise by 15%, totaling nearly €2 billion.

Additionally, Keravnos mentioned the government's objective for next year's budget: to manage the public wage expense. To illustrate, he compared the number of new public sector job openings—only 52 positions in 2024 compared to 485 in the 2023 budget.

When asked about initiatives to address inflating prices, Keravnos stated that the current budget includes ongoing measures. He also pointed out that reserves have been set aside for any new strategies the government might introduce.