Understanding the costs of drug-related actions is an important aspect of drug policy. Some of the funds allocated by governments to expenditure on tasks related to drugs are identified as such in the budget (‘labelled’). Often, however, most drug-related expenditure is not identified (‘unlabelled’), especially in the field of supply reduction initiatives, and must be estimated using modelling approaches.
In 2016, total drug-related expenditure represented 0.02 % of Cyprus’s gross domestic product (GDP). The total expenditure of approximately EUR 4 million was divided into three main areas: healthcare, education, and law enforcement and coordination.
Trend analysis shows that, between 2004 and 2008, total drug-related public expenditure grew steadily from 0.02 % to 0.06 % of GDP and, in 2010, it decreased to 0.03 % of GDP, which may be associated with public austerity measures following the economic recession of 2008. Since then, expenditure has remained stable, varying between 0.04 % and 0.06 % of GDP. The year 2016 showed a further slight decline in the proportion of drug-related expenditure as a percentage of GDP. The available data indicate that reported drug-related public expenditure may be an underestimate, in particular with regard to ‘unlabelled’ public expenditure.