Nicosia:The 2026 State Budget of Cyprus has achieved a 44% implementation rate of its development expenditure in the first nine months of the year. This marks an increase from the 41% recorded in the same period in 2025 and exceeds the annual average of 36% over the past decade.

According to Cyprus News Agency, the State Budget Implementation Report, released by the Treasury of the Republic of Cyprus, indicates that total development expenditure for 2026 is set at £1.62 billion, with £711.60 million already implemented by the end of September. Revenue for the period reached £7.51 billion, accounting for 70% of the budgeted revenue, while actual expenditure was £7.01 billion, representing a 61% implementation rate.

More specifically, net indirect tax revenue rose by £0.25 billion, an 8% increase, and direct tax revenue grew by £0.48 billion, a 17% rise compared to 2025. Expenditure on salaries, pensions, and gratuities remained constant at £2.45 billion. Social benefit expenditure increased to £1.47 billion, and transfers and grants saw a 9% increase to £1.42 billion. Operating and other expenditure reached £0.74 billion, while financing costs totaled £0.46 billion. Furthermore, capital expenditure implementation reached £243.6 million, with co-funded and other financing expenditure at £216.6 million, and grants, contributions, and subsidies at £168.3 million. Social benefit expenditure implementation stood at £40.9 million by the end of September.