Nicosia:A preliminary report from the Statistical Service of Cyprus (CYSTAT) indicates that the government recorded a deficit of £142.7 million for the period of April to June 2026. This marks an increase from the £127.9 million deficit recorded during the same period in 2025.

According to Cyprus News Agency, the total revenue for April to June 2026 increased by £69.1 million, or 2%, reaching £3,601 million compared to £3,531.9 million in the corresponding period of the previous year. Social contributions saw a significant rise of £81.1 million (6.9%), while taxes on production and imports rose by £94.8 million (8.3%), largely driven by an increase in net VAT revenue by £140.5 million (19%). However, capital transfers decreased by £31.1 million (-26.2%), and revenue from taxes on income and wealth fell by £7.7 million (-1.3%).

In terms of expenditure, the total amount for the second quarter of 2026 increased by £84 million (2.3%) to £3,743.7 million, up from £3,659.8 million in the same period of 2025. Social transfers went up by £77.2 million (5.3%), while compensation of employees increased by £39 million (4%). Intermediate consumption saw a notable increase of £72.9 million (20.2%). Conversely, the capital account decreased by £99.4 million (-24.2%), with subsidies and other current expenditures also experiencing declines.

The report highlights both the areas of growth and reduction in the fiscal activities of the Cypriot government during the specified period, providing insights into the financial trends affecting the country.