Nicosia: The implementation of the state budget up to the end of October reached 65% in terms of revenue and 59% in terms of expenditure, according to data published on Monday by the Treasury.
According to Cyprus News Agency, at the end of October 2025, revenues amounted to pound 7.63 billion, corresponding to 65% of the state budget, while actual expenditures reached pound 7.68 billion, corresponding to 59% implementation. This marks a decrease in both revenue and expenditure implementation compared to the same period in 2024, where revenue was at 75% and expenditure at 64%.
The Treasury noted that the decrease in revenue implementation is mainly due to a reduction in Loan Assumptions by pound 1.05 billion, although this was partially offset by increases in Direct and Indirect Taxes by pound 0.16 billion and pound 0.13 billion, respectively. The decrease in expenditure implementation was primarily attributed to a reduction in Loan and Interest Repayments by pound 1.18 billion.
Indirect Taxes saw an increase of 4% compared with 2024, mainly driven by a rise in VAT revenues, Other Indirect Taxes, and Excise Duties. Direct Taxes also increased by 5%, primarily due to higher Income Tax revenues from both legal and natural persons.
On the expenditure side, salaries, pensions, and gratuities showed a slight decrease. Loan and interest repayments experienced significant reductions, especially in the repayment of external and domestic loans. However, social benefits expenditure saw a slight increase due to grants to the Renewable Energy Sources Fund and increased health benefits, despite a decrease in social welfare benefits.
Transfers and subsidies showed a 10% increase, driven by higher grants to municipalities, the gross national income own resource, and contributions to the Social Insurance Fund. This was partially offset by a decrease in grants to the University of Cyprus.
Operational and other expenses decreased by 11% compared to the previous year. The average implementation rate for total state budget expenditures by October over the past decade stood at 65%, with 2025 showing a lower rate due to the seasonality of public debt repayments.
Capital expenditure implementation and co-funded and other financing expenditures showed varied implementation rates, with development expenditures reaching a slightly higher rate of 46% compared to the decade’s average of 42%.