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The Government has allocated more than €1 billion since 2023 to help households cope with rising living costs, Finance Minister Makis Keravnos said, pointing to five support packages introduced in response to imported inflation and the energy crisis.
In a message published on the Government's social media accounts on Monday, Keravnos attributed the pressure on prices to imported inflation linked to the energy crisis caused by armed conflicts.
"A consistent objective of our policy is to improve the daily lives of citizens through the implementation of a comprehensive social policy that protects and strengthens the disposable income of workers, vulnerable individuals and households," he said.
Keravnos argued that maintaining a resilient economy through responsible financial management was essential to funding assistance for citizens and small businesses. He said budget surpluses and declining public debt had given the Government the capacity to meet its borrowing obligations while directing the benefits of economic growth back into society through targeted measures.
He also pointed to the tax reform introduced in January, which he said had already increased disposable income for approximately 200,000 people. More than 50,000 people are now exempt from paying income tax.
The changes include tax deductions for rent or mortgage interest on a primary residence, as well as investments in environmentally friendly home improvements. Families with children also benefit from additional tax allowances of €1,000 for the first child, €1,250 for the second and €1,500 for the third and each subsequent child.
Similar adjustments have been made to child benefits, while the income thresholds for receiving support have increased to €90,000 for families with three children and €100,000 for those with four. Families with five or more children are no longer subject to income-based eligibility criteria.
Returning to the cost-of-living measures, Keravnos said approximately €1 billion had been distributed through five support packages since 2023 to help limit the impact of imported inflation.
"None of these measures are funded with money we do not have. We support society because our economy allows us to do so. This is the result of the Government's responsible economic policy," he said.
The minister added that the wealth generated by workers and businesses should benefit society as a whole, with assistance directed first towards those most in need.
He encouraged citizens to visit se-afora.gov.cy for further information, concluding with a call for the public to join the Government's efforts to bring change to Cyprus.
