Parliament approved the 2026 state budget on Wednesday with cuts amounting to just €10.2 million from total credits of €13.7 billion, as parties approved only 31 of the 91 amendments submitted.
The budget passed with the support of DISY, DIKO, ELAM, DIPA and EDEK. The plenary cut 5% of operating expenses, equalling €10.2 million, whilst the cut to privatisation allocations has zero cost as these are non-existent funds, DISY MP Harris Georgiades said in parliament.
The two approved cuts represent just 0.078% of the total budget. A major debate centred on exemptions to privatisation allocations, with the majority of parties exempting Troodos development, the Cyprus Sports Organisation and Larnaca Marina, but not Larnaca port.
The electricity interconnection with Greece caused tensions within parties, with three MPs breaking from their party’s official position. The vote on freezing funds for ADMIE, the Greek electricity operator, was decided by a single vote—27 MPs for freezing, 28 against.
AKEL, EDEK, DIPA and the Greens supported the freeze, along with DISY MP and Energy Committee chair Kyriakos Hadjiyiannis, DIKO MPs Zacharias Koulias and Christos Orfanides, and independent Alexandra Attalides. DISY MPs, DIKO MPs, ELAM and independents Andreas Apostolou and Michalis Yiacoumi voted against.
Parties faced last-minute pressure from communities over a €109 million road project—the 19-kilometre Nicosia-Anthoupoli-Kokkinotrimithia-Astromeritis-Evrychou section. Strong local reactions prompted DIKO to submit an amendment at the last minute, though it was limited to requiring six-monthly briefings to parliament on the project.
Ten allocation freezes approved by parliament are essentially meaningless, as they will certainly be unfrozen in the first two months of 2026 due to parliamentary elections in May and new MPs taking up duties in June.
The freezes include funds for Photo Radar List operation, new limousines for state officials, vehicles for public service needs, Phase A of Makarios Avenue construction, the primary road from Aglandjia to the international exhibition in Engomi, and consultancy services for the state exhibition.
Additional freezes cover the Akademias Avenue extension in Aglandjia, infrastructure for marine aquaculture units, renovation and extension of Faneromeni Girls’ School for the University of Cyprus Architecture Department, grants against tax write-offs, banking charges and embassy building improvements in New York.
Ministries must provide six-monthly briefings to parliament on various items including road constructions, the Cyprus Ports Authority lease for Limassol Port, sustainable urban mobility projects, the polluting vehicle withdrawal scheme, housing schemes, ministerial discretionary funds and implementation of the EU’s FIT for 55 climate package.
Finance Minister Makis Keravnos expressed satisfaction with the budget approval. “We proceed with implementation of our work and our social and development policy without obstacles and delays,” he said.
The minister thanked parties that voted against the budget, noting: “We have heard criticism and criticism is important for us because we always try to see positive suggestions and also learn from our experience.”
With the budget approval, the Cypriot economy can proceed with known development rates and implementation of the government work of Nikos Christodoulides’s government will continue, he said.
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