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Greek Parliament Unanimously Passes Historic 2026 National Funds Budgets

Groundbreaking Approval In Parliament

For the first time, the Hellenic Parliament has unanimously approved the 2026 budgets for four major national funds. The decision marks an important step in public financial planning and signals broad political agreement on fiscal priorities and spending discipline.

Social Security Fund Budget: A Surplus Vision

The enactment of the first law confirmed the 2026 budget for the Social Security Fund (TEKA), which allocates expenditures amounting to €2,743,074,164. With total revenues estimated at €3,769,782,936, the fund is positioned as surplus. The revenue stream is largely driven by contributions of €3,217,065,000, supplemented by receipts from the National Reserve Fund intended for the minimum pension (€34,451,000), interest earnings of €225,916,292, and additional income of €292,350,644. Notably, the dominant expenditure category is pension disbursements at €2,172,611,000, with further allocations for supplementary benefits, unemployment allowances, procurement of services, administrative expenses, and other outlays.

Central Licensing Fund’s Balanced Outlook

In tandem with the Social Security Fund, Parliament also approved the 2026 budget for the Central Licensing Fund. This fund outlines total expenditures of €132,433,736 against revenues of €144,319,048, emerging with a surplus. Revenues are forecasted mainly from contributions of €140,036,010, interest earnings of €4,248,038, and accrued minor receipts, while expenditures primarily cover licensing disbursements, associated administrative expenses, and contingency allocations.

Protecting Employee Rights in Insolvency

The budget for the Fund for the Protection of Employee Rights in the Event of Employer Insolvency was also given the green light. This fund is designed to manage €231,452 in expenditures against revenues of €33,287,400, indicating a considerable surplus. With revenues predominantly sourced from contributions of €27,417,936 and interest earnings of €5,869,454, the fund’s primary expenses include payments associated with employer insolvency, service procurement by the Social Security Agency, and modest administrative and reserve allocations.

Addressing Excess Personnel Costs

The final fund approved is the Excess Personnel Fund for 2026, which details expenditures of €58,103,793 alongside revenues of €180,819,059. Contributions of €165,168,286 form the major revenue component, complemented by interest and ancillary incomes. The fund’s principal expenses cover compensation for surplus staffing, transfers to the Employee Rights Protection Fund under insolvency, service purchases from the Social Security Services, legal fees, discretionary administrative expenses, and a designated reserve for unforeseen costs.

Strategic Fiscal Oversight

These pioneering budget submissions, presented to Parliament following a proposal by the House of Representatives and in accordance with the Law on Fiscal Responsibility and the Fiscal Framework Law, reflect a robust and balanced approach toward national financial management. This coordinated effort reinforces the government’s commitment to maintaining fiscal discipline while safeguarding essential social benefits and labor rights.

Cyprus Government Surplus Rises To €1.61 Billion In First Nine Months Of 2026

Cyprus recorded a general government surplus of €1.61 billion in the first nine months of 2026, equal to 4.0% of gross domestic product, as revenue growth outpaced the rise in public spending. Higher receipts from income taxes, social contributions and value-added tax (VAT) drove the improvement, while lower capital expenditure helped restrain spending.

Preliminary figures released Tuesday by the Statistical Service of Cyprus show the surplus rose to €1.17 billion, or 3.0% of GDP, up from € 442.1 million in the same period of 2025.

Total government revenue increased 6.5% to €12.09 billion, while expenditure rose 2.9% to €10.48 billion.

Key Fiscal MeasureJanuary–September 2025January–September 2026
Total revenue€11,353.9 million€12,091.8 million
Total expenditure€10,186.2 million€10,482.1 million
Government surplus€1,167.6 million€1,609.7 million
Surplus as a share of GDP3.0%4.0%

Income Taxes And VAT Lead Revenue Growth

Taxes on income and wealth made the largest contribution to the increase in revenue. Receipts in this category climbed by €442.2 million, or 15.3%, to €3.34 billion, compared with €2.89 billion a year earlier.

Social contributions rose by €235 million, or 6.6%, to €3.78 billion. Taxes on production and imports increased by €251.5 million, or 7.2%, reaching €3.77 billion.

Net VAT receipts, after refunds, totalled €2.64 billion, up €293.1 million, or 12.5%, from €2.35 billion in the first nine months of 2025.

Some Revenue Streams Decline

Not all revenue categories moved higher. Capital transfers fell by €74.6 million to €96.7 million, while current transfers declined by €71.6 million, or 20.5%, to €278.2 million.

Revenue from services slipped 1.0% to €743.5 million. Interest and dividend receipts dropped by €37 million, or 28.6%, to €92.4 million.

Social Benefits And Personnel Costs Increase

On the expenditure side, social benefits rose by €199.6 million, or 4.9%, to €4.27 billion. Compensation of employees—which includes imputed social contributions and public-sector pensions—increased by €108.3 million, or 3.8%, to €2.99 billion.

Intermediate consumption, covering goods and services used in the delivery of public services, rose by €114.3 million, or 11.0%, to €1.16 billion. Interest payments increased by €8.7 million, or 2.6%, to €340.7 million. Current transfers were up €68.7 million, or 10.6%, at €714.7 million.

Lower Capital Spending Limits Expenditure Growth

The overall increase in spending was tempered by a decline in capital expenditure. Capital-account spending fell by €189.9 million, or 16.9%, to €936.2 million from €1.13 billion in the same period last year.

Investment in fixed capital declined by €94.1 million, or 12.1%, to €686.4 million. Other capital transfers fell by €95.8 million, or 27.7%, to €249.8 million. Subsidies also decreased, dropping by €13.9 million, or 15.5%, to €75.8 million.

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