Three-Day Discussion Begins
Parliament launched a three-day debate on the 2026 state budget on Monday, concluding Wednesday with voting. The budget projects increased revenues and expenditures for both general and central government. Parliamentary Finance Committee report estimates general government revenues at €16.488 billion, up 4.5% from 2025, with expenditures at €15.361 billion, rising 5.3% annually.
Finance Minister submitted 61 government amendments for incorporation before final approval.
Papadouris: Positives but clear shortcomings
Ecologists Movement President Stavros Papadouris noted the budget’s positive elements alongside evident deficiencies. “Small and medium classes face pressure; youth struggle for independent lives, families, even hopeful futures.”
Macro-economy shows stability, but daily micro-economy remains fragile. “Budget drafters must finally recognize this,” demanding greater social sensitivity or class consciousness.
He called for fairer tax distribution: VAT cuts on expanded basic goods lists, intensified tax evasion checks on major players, incentives for stable job-creating investments.
Papadouris welcomed tax reform improvements from initial drafts, praising Finance Minister’s receptivity to parties’ human-centered proposals.
DIKO: Strong economy enables problem-solving
DIKO President Nikolas Papadopoulos stated Cyprus economy’s best-ever data allows tackling chronic issues. “We’ve reached full 2013 crisis recovery after 12 years,” rejecting total nihilism.
Positive trajectory not guaranteed; built progress easily destroyed. He supported tax reform for equalizing Cypriot-foreign businesses, welcomed foreign university branches and English programs.
€26 million for disability benefits insufficient per government announcement. Demanded €300 monthly low/medium pension hikes.
Annita: Will vote despite wrong priorities
DISY President Annita Demetriou announced responsible support despite government’s misplaced priorities. DISY persists on own priorities, intervening correctively as with tax reform and teacher evaluations.
More public investments needed for long-term quality-of-life gains: water, traffic, rural development, anti-urbanization, energy. Last three years under-prioritized due to inelastic spending.
DISY amendments bolster broad middle class bearing most taxes, receiving least back. Criticized timidity, inaction on energy, water, housing, defense; budget remains poor there.
Stefanou: Budget fails society’s needs
AKEL GS Stefanos Stefanou criticized budget ignoring societal needs, lacking long-term sustainable/resilient/socially-oriented strategy securing future generations. AKEL will vote against for the third Christodoulides government year.
“One-sided fiscal logic prioritizes numbers over citizens,” covering state operations without social cohesion investment. Fails housing crisis, electricity/fuel costs, living expenses.
Productive investments only 13% vs. EU 22% average; 2024 development budget execution 61%. Major projects stalled like Paphos-Polis Chrysochous road, Vasiliko.
Tax revenues 80% of total, indirect (42%) over direct (38%), wealth taxes 2%. Tax reform worsens social injustice, ignoring 50% of society.
Also read: AKEL to vote against 2026 state budget
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