The focal point of Cyprus’ 2024 state budget, as pronounced by Finance Minister Makis Keravnos, is the reinforcement of fiscal stability. The budget aims to navigate the country’s economy towards a more advanced period, meeting specific green transition and digital transformation objectives. It also emphasizes maintaining a budget surplus to meet European obligations and prepare the country for any potential situations.
What is the focal point of Cyprus’ 2024 state budget?
The focal point of Cyprus’ 2024 state budget, as pronounced by Finance Minister Makis Keravnos, is the reinforcement of fiscal stability. The budget aims to navigate the country’s economy towards a more advanced period, meeting specific green transition and digital transformation objectives. It also emphasizes maintaining a budget surplus to meet European obligations and prepare the country for any potential situations.
Finance Minister Makis Keravnos, during a discussion in the Committee on Economic Affairs, pronounced the focal point of Cyprus’ 2024 state budget as the reinforcement of fiscal stability. The budget’s main aim is to sail the country’s economy towards a more advanced period while meeting specific green transition and digital transformation objectives.
Emphasis on Budget Surplus
Keravnos highlighted the significance of maintaining a budget surplus, especially amidst an era of persistent negative developments. Such a surplus is not only pivotal in meeting European obligations concerning public debt targets and other commitments but also in preparing the country to manage every possible situation that could arise.
The Macroeconomic Scenario Post Israel Crisis
Highlighting the macroeconomic outlook, Keravnos expressed that despite the Israel crisis, the medium-term prospects for Cyprus’s economy remain positive, albeit with a significant degree of uncertainty. The crisis’s impacts have not been included in the current budget due to its formulation during a period of serious economic ambiguity driven by geopolitical developments and the crisis in Israel.
Ongoing Economic Reforms and Their Implications
The ongoing economic reform, which is still being outlined and is fiscally neutral, is not reflected in the current budget. Similarly, the impacts of recent measures and Cyprus’ assumption of the EU presidency in the first half of 2026 have also been excluded from the budget.
Medium-Term Fiscal Framework 2024-2026: Key Priorities
Keravnos elaborated on the key priorities guiding the preparation of the 2024 budget and the Medium-Term Fiscal Framework 2024-2026. These priorities include achieving a surplus in fiscal balance, maintaining public sector employment, reducing public debt in the medium term, and executing significant infrastructure projects.
These infrastructure projects, underlined by Keravnos, are of high importance as they possess added value. They are expected to emphasize certain plans and co-financed projects crucial for sustaining the developmental path of the country’s economy.
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In simple words, Cyprus’ 2024 state budget is focused on making sure their economy is stable. They want to make their economy more advanced, especially in terms of being environmentally friendly and using technology. They also want to make sure they have enough money left over after spending to meet their commitments to Europe and be prepared for any problems that might come up. The Finance Minister says that it’s important to have more money coming in than going out, especially when there are negative things happening in the world. He also said that even though there is a crisis going on in Israel, Cyprus’s economy is still expected to do well in the future. The budget doesn’t include the impacts of the crisis in Israel or some other things that are still being worked out. The Minister said that the budget has certain goals, like having more money left over, keeping government jobs, reducing debt, and doing important projects to improve the country.
