The Ministry of Finance has submitted a Supplementary Budget for 2023 to the Parliament, amounting to €361,098,659. This budget represents 0.85% of the Gross Domestic Product (GDP) and aims to address the fiscal balance effectively. It is worth noting that €116 million of this amount corresponds to intra-government transactions and will not impact the fiscal balance.

Accompanying the draft law for the supplementary budget is an explanatory report, which was approved by the Council of Ministers on June 21. The report highlights that following the Parliament's approval of a €75 million supplementary budget for 2023, aimed at supporting Ukrainian refugees, unaccompanied minors, and continuing the electricity subsidy program for citizens and businesses, several independent services, ministries, deputy ministries, and departments have approached the Ministry of Finance with additional funding requests.

These requests are driven by various needs arising from the significant economic consequences of the war in Ukraine and inflation. They encompass social benefits, healthcare, education, sports, housing for displaced individuals, support for the agricultural sector, and other pressing requirements.

The major expenditures within this budget allocation include €60 million for the payment of ATA (state university scholarships) in the second semester of 2023, €60 million for the implementation of co-funded projects and sponsorship plans, €59 million for water procurement due to increased costs of desalinated water, primarily attributed to the rising electricity prices. Additionally, €56 million has been allocated as a government grant to the University of Cyprus. This funding serves both the implementation of development projects (€42.6 million) and the coverage of operational expenses (€13.4 million).

Other significant allocations consist of €25.4 million for the acquisition of the "Metropolitan" building, designated to house the Ministry of Labour and Social Insurance. Furthermore, €18.2 million is allocated for the extension of the electricity consumption subsidy measure, while €15.8 million supports the construction of student residences through a state grant to TEPAC. Moreover, €15.6 million has been allocated for hosting displaced individuals from Ukraine and unaccompanied minors seeking international protection.

In response to the ongoing COVID-19 pandemic, €15 million is designated for the purchase of medicines and vaccines. Additionally, €11.5 million is allocated for the hiring of emergency personnel across all levels of education, and €9.4 million has been granted to the Sports Organisation (KOΑ) to construct and enhance sports facilities.