Personnel costs and social benefits dominate Cyprus’s budget
The main categories of state expenditures in the Republic of Cyprus for fiscal year 2023 include personnel wages, pensions, and bonuses, social benefits, and transfers. Social benefits also include the government’s contribution to the General Health Plan. The number of personnel has fluctuated over the years, with an increase in wage expenditures. Pensions and bonuses increased by 7% in 2023. The largest part of wage expenditures is for educators in the Ministry of Education, Culture, Sports, and Youth. Social benefits include medical care, emergency grants, emergency humanitarian incidents, and supplementary pension benefits. The total amount of loans as of December 31, 2023, stood at €22.18 billion. State financing is mainly done through European Medium-Term Notes and loans from the European Stability Mechanism. Approved expenditures for 2023 were €12 billion, with actual expenditures reaching €10.92 billion. Total revenues for 2023 were €9.94 billion, resulting in a state budget deficit of €0.98 billion.