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 by the Treasury.
At the end of October 2025, revenues amounted to €7.63 billion, corresponding to 65% of the state budget (2024: €8.48 billion, 75%), while actual expenditures reached €7.68 billion, corresponding to 59% implementation (2024: €8.77 billion, 64%).
As noted by the Treasury, the implementation of the state budget in relation to revenues shows a decrease compared with the same period last year, mainly due to a reduction in Loan Assumptions by €1.05 billion, which is offset by an increase in Direct and Indirect Taxes by €0.16 billion and €0.13 billion respectively. Budget implementation in relation to expenditure is also reduced, primarily due to a decrease in Loan and Interest Repayments by €1.18 billion.
Revenues
According to the Treasury’s data, Indirect Taxes increased by €0.13 billion (4%) compared with 2024, mainly due to an increase in VAT revenues by €0.05 billion (2025: €2.58 billion, 2024: €2.53 billion), revenues from Other Indirect Taxes by €0.04 billion (2025: €0.45 billion, 2024: €0.41 billion), and revenues from Excise Duties by €0.03 billion (2025: €0.44 billion, 2024: €0.41 billion).
Direct Taxes increased by €0.16 billion (5%) compared with 2024, mainly due to higher Income Tax revenues from legal and natural persons by €0.13 billion (2025: €2.75 billion, 2024: €2.62 billion).
By the end of October 2025, loan assumptions amounted to €0.09 billion (2024: €1.14 billion).
Total Expenditure
Regarding salaries, pensions, and gratuities, implementation at the end of October shows a slight decrease of €0.02 billion, from €2.75 billion in 2024 to €2.73 billion in 2025.
Loan and interest repayments by the end of October amounted to €0.82 billion (2024: €2 billion), of which €0.52 billion (2024: €0.58 billion) concern borrowing interest and charges, €0.22 billion (2024: €1.06 billion) the repayment of external loans, and €0.08 billion (2024: €0.36 billion) the repayment of domestic loans.
Social benefits expenditure by the end of October reached €1.51 billion (2024: €1.47 billion). The increase of €0.04 billion (3%) is mainly due to the grant to the Renewable Energy Sources Fund amounting to €0.04 billion (2024: €0.01 billion). Additionally, there was an increase in health benefits by €0.02 billion (2025: €0.64 billion, 2024: €0.62 billion), and a decrease in social welfare benefits by €0.02 billion (2025: €0.57 billion, 2024: €0.59 billion).
Transfers and subsidies by the end of October amounted to €1.46 billion (2024: €1.33 billion), showing an increase of €0.13 billion (10%) compared with the same period last year, mainly due to increased grants to municipalities by €0.05 billion (2025: €0.10 billion, 2024: €0.05 billion), the gross national income own resource by €0.05 billion (2025: €0.19 billion, 2024: €0.14 billion), and the General Government Contribution to the Social Insurance Fund by €0.05 billion (2025: €0.55 billion, 2024: €0.50 billion), contrasted with a decrease in the grant to the University of Cyprus by €0.02 billion (2025: €0.09 billion, 2024: €0.11 billion).
On the other hand, operational and other expenses by the end of October amounted to €0.70 billion (2024: €0.79 billion), showing a decrease of €0.09 billion (11%).
According to the Treasury, over the past decade, the average implementation rate of total state budget expenditures by October stood at 65%. The lower implementation rates for 2018 and 2025 are primarily due to the seasonality of public debt repayments. The implementation rate for 2025 stands at 59%.
Capital expenditure implementation up to the end of October amounted to €285.1 million. Implementation up to the end of October for co-funded and other financing expenditures amounted to €153.5 million. Additionally, grants, contributions, and subsidies amounted to €163.1 million by the end of October.
As for social benefits, implementation up to the end of October reached €87.3 million.
Finally, regarding development expenditures, the Treasury notes that over the past decade, the average implementation rate of development expenditures by the end of October stood at 42%. The implementation rate for 2025 amounts to 46%.
(Source: CNA)
