The Cabinet on Wednesday approved the state budget for 2024, estimating a 2.9% growth rate for the Cypriot economy.
In a statement after the approval of the state budget, President Christodoulides stated, “Today, the 2024 budget was approved by the Council of Ministers, marking the first budget of our administration. It reflects the clear imprint of our policy priorities. A surplus budget that transforms the core principles of the governance program into costed and achievable investments and reforms, placing people at the centre of all policies. Achieving a sustainable and resilient economy and promoting green and digital transition through modern governance are primary objectives, always within the framework of fiscal stability and responsibility.”
He also mentioned that with an estimated growth rate of 2.9% for 2024 and the creation of surpluses, they are ensuring a robust economy, which serves as the best defence for targeted social policies and the creation of secure conditions. In this context, the fiscal surplus for 2024 is estimated to be 2.2% of GDP, and our medium-term goal by 2026 is to reduce public debt to 60%.
The President emphasised that the real economy is being given priority through developmental expenditures, which improve competitiveness and productivity while also enhancing workers’ incomes overall and creating new high-quality jobs. Notably, capital expenditures compared to the 2023 budget have increased by €135 million. He stressed that the government’s responsible approach to budgeting is reflected, among other things, in the significantly reduced increase in permanent public sector positions, with just 52 positions compared to 485 in the 2023 budget.
Finally, he stated that strengthening the competitiveness of our economy is what will enable targeted actions in vital sectors such as education, healthcare, and social welfare. Substantial support for the middle class, improving citizens’ daily lives, and effectively addressing the impacts of inflation are the pillars of an innovative governance model with a strong social and developmental focus.