Minister for Finance, Makis Keravnos, spoke on Wednesday of a balanced and growth-oriented budget for the year 2027, following the approval of the relevant bill by the Council of Ministers, which will be put to a vote in the House of Representatives in December.

In his remarks following the conclusion of the Council’s session, Keravnos stated that the 2027 budget amounts to €11.1 billion, representing an increase of approximately 470 million compared with last year’s 2026 budget.

He also said that the growth rate in 2027 is expected to be around 2.9%, despite the fact that there are encouraging signs that it may even exceed 3%, whilst unemployment is expected to remain at current levels of full employment, with a downward trend.

He added that the budget balance for 2027 is forecast to be in surplus and is expected to rise to 2.8% as a percentage of gross domestic product, compared with 2.3% in 2026, whilst, the primary balance is expected to rise to 4% of GDP, compared with 3.6% in 2026.

On the subject of inflation, he said that it is directly affected by fuel prices, with the forecast predicting a rate of around 4%.

Furthermore, the Minister of Finance noted that in the 2027 budget, as well as in the 2027–2029 medium-term fiscal framework, particular emphasis is placed on increasing defence spending.

“The aim of the 2027 state budget, as well as the medium-term fiscal framework, is to maintain a budget surplus, to continue to keep public sector employment in check, further reducing public debt in the medium term, and promoting the green transition and digital transformation, as well as fostering sustainable growth in key sectors of the economy and maintaining a robust financial system”, he noted in this regard.

He added that in 2027, development expenditure is expected to reach €1.1 billion, whilst capital expenditure is expected to increase by 2.1% in 2027 compared with 2026.