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22 June, 2024
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15.4% spike in public expenditure for 2024

Where does the 2024 budget go?

Panayiotis Rougalas

Panayiotis Rougalas

In the 2024 Budget, there's a notable rise of EUR 0.5 billion in public personnel expenditure. According to the Council of Ministers' approved budget table for 2024, this marks a substantial increase of 496 million euros. In terms of percentages, this surge amounts to 15.4% compared to the personnel expenditure allocated for the public sector in 2023.

Interestingly, despite the Ministry of Finance's report indicating a reduction in new permanent positions for 2024 compared to 2023, the overall cost of civil servants continues to rise. Specifically, for 2024, the Ministry of Finance reports a total increase of 52 positions, whereas in 2023, this increase was a significant 485.

Looking at the bigger picture, the staff costs for 2024 are budgeted at EUR 3.72 billion, a noticeable uptick from the 2023 budget of EUR 3.23 billion. When we delve into total remuneration, it amounts to EUR 2.93 billion for 2024, compared to EUR 2.47 billion in 2023.

Noteworthy 9.9% Increase in Staff Remuneration

Returning to the figures of the 2024 Budget and staff costs, the staff remuneration has increased by 206 thousand euros, which translates to 9.9% in comparison to 2023. Specifically, the 2024 budget allocates EUR 2.29 billion for staff remuneration, while in 2023, this figure was EUR 2.09 billion.

Breaking down the staff remuneration, Republic's officials are also set to benefit from increases. The 2024 expenditure for Republic's officials is budgeted at €14.2 million, compared to €13.4 million in 2023, indicating an increase of 822 thousand euros, or 6.1%.

Additionally, state employees' salaries are part of the staff expenses. In 2024, they are expected to cost 197 thousand euros more than in 2023, totaling 2.1 billion euros compared to 1.92 billion euros in 2023. This constitutes a 10.3% increase.

The final portion of the budget allocation for staff salaries concerns hourly government staff. Here, there's a 5.1% increase when comparing 2024 to 2023, amounting to 165 million euros. In 2023, the budget allocated 157 million euros, indicating an increase of 7.9 million euros.

Contributions to Various Funds

In terms of contributions to various funds, 21.9 million euros have been budgeted for external service staff in 2024, a notable increase of 1.67 million from the 2023 budget. Government contributions to the Social Security Fund for 2024 will reach 288.9 million, up from 234.1 million in 2023, marking an increase of 1.97 million.

Additionally, the contribution to the occupational pension benefit plan will reach 21.9 million, up from 20 million in 2023. It's worth noting that in the 2024 Budget, there's a retroactive contribution of EUR 190 million to the occupational pension benefits plan for 2024.

Finally, in the personnel expenditure category, there are government contributions to other funds, which amount to EUR 7.9 million for 2024, along with the government's contribution to the CPS at EUR 43.5 million and the government's contribution to the General Health Plan of EUR 63.4 million.

Pensions and gratuities for 2024 are budgeted at EUR 792 million, compared to EUR 760 million for 2023, reflecting an increase of €32 million, or 4.2% in percentage terms.

[This article was translated from its Greek original]

Cyprus  |  economy  |  budget  |  money

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