The Government of Cyprus Presents 2025 Budget

The Government of the Republic of Cyprus has submitted the state budget for the 2025 fiscal year to the parliament. Projected expenditures are set at €12.9 billion, while revenues are expected to reach €10.3 billion.

Approximately 80% of the total revenue is forecasted to come from direct and indirect taxes, amounting to around €8.48 billion.

Compared to 2024, the government plans to reduce spending, largely by lowering public debt servicing costs, which will decrease from €3.38 billion to €2.75 billion.

Transfers, which include social benefits and grants to public organizations, are projected to total €3.99 billion, marking a 5.3% increase from 2024.

Additionally, the government intends to increase its contribution to the national healthcare system (Gesy) next year.

Forecasts predict that GDP will grow by 3.1% in 2025, 3.2% in 2026, and 3.3% in 2027.

Unemployment is expected to gradually decline, from 5% this year to 4.8% in 2025, 4.6% in 2026, and 4.5% in 2027.

Inflation, based on the consumer price index, is projected to remain around 2% during the 2025–2027 period.

The ratio of public debt to GDP is also expected to decrease in the coming years, dropping from 69.3% this year to 64.2% in 2025, and to 53.5% by 2027.