The cabinet has approved the Mid-Term Fiscal Plan for 2025-2027, which was published in the Official Gazette yesterday.

The primary goal of the “2025-2027 Mid-Term Fiscal Plan” is to maintain macroeconomic stability, ensure fiscal discipline, achieve budget balance, reduce inflation, accelerate growth, increase employment, and improve income distribution.

The two year Mid-Term Fiscal Plan envisages strict control over public expenditures, aiming to implement cost-saving measures in current expenditures.

The resources saved through these measures will be redirected towards investment projects.

The budget deficit is expected to decrease gradually as of 2025.

By the end of the 2026 fiscal year, the plan aims to balance revenues and expenditures, achieving a balanced budget, and by 2027, the goal is to attain a surplus in the central government budget.

The plan highlights that due to the TRNC economy being among the untapped economies favourable for investment, policies to incentivize foreign investors will be structured within the plan.