MPs are avoiding major cuts to the annual state budget ahead of May’s parliamentary elections, opting instead to require six-monthly updates rather than make decisions that would bind their successors in a chamber where a third of members are expected to change.
Parliament will approve the 2026 state budget this afternoon with just 12 of 92 proposed amendments acquiring the required majority, marking a shift from previous years’ battles over funding cuts and programme restrictions.
Current MPs do not want to leave contentious decisions as a legacy to new parliamentarians, with data showing one-third of Parliament members are expected to change following the May 2026 elections. The budget is expected to be approved with the support of DISY, DIKO, DIPA and EDEK.
Rather than crossing out funds, parties are choosing to insert notes requiring Parliament to receive written updates every six months on how money is spent. This approach applies to €64.2 million in social welfare credits, €166.8 million for housing benefits and construction projects, €3.2 million in Health Ministry grants, and expenses for Park and Ride passenger transport.
The handful of amendments that will pass include crossing out funds for the Phase A construction of Makarios Avenue and the southern extension of Academy Avenue, whilst committing €18.5 million for primary municipal roads including projects in Nicosia and surrounding areas.
Parliament will be updated on a €15 million fund for an interest rate subsidy scheme providing up to 1.5 per cent subsidy for housing loans, up to 3.5 per cent for business loans in the first two years, and lower rates for years three and four. Updates will also cover €19.5 million for pension rights compensation and First Home Support Schemes.
An amendment was submitted for a €53.7 million commitment for the Cyprus-Greece electrical interconnection and expenses for the Vasilikos energy plant master plan.
Amendments not expected to pass include 5 per cent cuts to operational expenses, restrictions on government department rental payments and real estate purchases, and a ban on hiring personnel through service purchases except in exceptional cases.
Individual party positions reveal the political divisions being sidestepped. AKEL is requesting cuts to privatisation expenses, which may gain the required majority, as well as cutting Defence Ministry funds for EU programme participation and the European Peace Facility contribution. The party also wants credit commitments for the Akamas Sustainable Development Plan and the new Limnes asylum seeker reception centre.
ELAM proposes cutting all migration credits including new checkpoint openings, bi-communal programmes, asylum seeker benefits, Makarios Avenue road construction, state funding for the English School, as well as tuition for Turkish Cypriot student scholarships at the English School.
EDEK proposes crossing out expenses for court security service contracts with private firms, whilst DIPA wants to cut funds for Larnacos Avenue improvement in Nicosia and Aglantzia.
Some parties will make final decisions today, meaning additional amendments could be approved at the last minute. As in previous years, cooperation between parties secured approval of some changes, with alliances forming to pass additional amendments, though the overall approach remains notably cautious compared to past budget battles.