Nicosia: The implementation of the State Budget for the first 11 months of 2025 has shown a decrease in revenue and an increase in expenditure compared to the same period last year, according to the Treasury of the Republic's announcement on Tuesday.
According to Cyprus News Agency, the State Budget report covering the period from January 1 to November 30, 2025, reveals a 4% increase in revenue, reaching pound 11.75 billion compared to pound 11.28 billion in 2024. Conversely, there's a 4% decrease in expenditure, with 2025 figures at pound 13.01 billion, down from pound 13.60 billion in 2024. The increase in revenue is primarily attributed to a rise in direct and indirect taxes, while the decrease in expenditure is mainly due to lower loan repayments.
At the end of November 2025, state revenues amounted to pound 8.60 billion, representing 73% of the budget, a decrease from 82% in the same period in 2024. Actual expenditure stood at pound 9.59 billion, reflecting a 74% budget implementation, slightly up from 71% the previous year. The decrease in revenue is largely due to a pound 1.05 billion drop in borrowing, although it was partially offset by increases in direct and indirect taxes.
Indirect taxes saw a 4% increase, mainly due to a rise in VAT revenues, other indirect taxes, and excise duty revenue. Direct taxes also rose by 6%, driven by increases in corporate and personal income taxes. Despite these gains, loan withdrawals significantly decreased from pound 1.14 billion in 2024 to pound 0.09 billion in 2025.
Expenditure on salaries, pensions, and gratuities slightly decreased, while loan and interest repayments also dropped. However, social security expenditure rose by 3%, influenced by increased subsidies to the Renewable Energy Sources Fund and higher health benefits. Transfers and subsidies saw a 9% increase due to larger grants to municipalities and contributions to the Social Security Fund.
Operating and other expenses fell by 8%, but development expenditure increased, particularly in road network projects and construction improvements. Co-financed and other financial expenditures also rose, benefiting from projects implemented by non-governmental agencies and various government plans and programs.
In the sponsorships, contributions, and grants category, significant sponsorships were allocated to universities and research institutes. Social benefits totaled pound 90.2 million, predominantly due to grants to the Renewable Energy Sources Fund and various student and cultural subsidies.
The report concludes that over the last decade, state budget implementation for development expenditure by November averaged 50%, with 2025 reaching 56%, partially due to a reduction in the initial budget by pound 67.1 million.