By the end of July, implementation of the state budget had reached 50% on the revenue side and 47% on the expenditure side.
According to a Treasury press release, by the end of July 2026, actual revenues and expenditures both stood at €5.43 billion, representing equal execution in absolute terms.
Compared with the same period in 2025, revenues increased by €0.26 billion, mainly due to higher receipts from indirect and direct taxes, which rose by €0.16 billion and €0.15 billion, respectively.
Expenditure increased by €0.26 billion, mainly as a result of higher operating expenditure (€0.11 billion), transfers and grants (€0.09 billion), and social benefits (€0.08 billion).
Borrowing inflows amounted to €1.31 billion (2025: €0.06 billion), while borrowing outflows stood at €2.10 billion (2025: €0.13 billion).
Revenue
Indirect taxes increased by a net €0.16 billion (7%) compared with 2025, mainly due to higher VAT receipts, which rose by €0.20 billion to €1.98 billion in 2026, from €1.78 billion in 2025.
Similarly, direct taxes increased by a net €0.15 billion (8%), driven by higher income tax receipts from legal entities and individuals, which increased by €0.16 billion to €1.95 billion in 2026, compared with €1.79 billion in 2025.
Expenditure
According to the Treasury, over the past decade, the average implementation rate for total state budget expenditure by the end of July was 47%, the same level recorded in 2026.
Expenditure on salaries, pensions and gratuities showed a slight decrease compared with the same period last year, falling from €1.91 billion in 2025 to €1.90 billion in 2026.
Social benefit expenditure reached €1.13 billion by the end of July 2026, compared with €1.06 billion in 2025.
Transfers and grants amounted to €1.13 billion in 2026, compared with €1.05 billion in 2025, an increase of approximately €0.08 billion (8%).
Meanwhile, operating and other expenditure reached €0.53 billion by the end of July 2026, compared with €0.41 billion in 2025.
By the end of July 2026, financing expenditure, including interest payable and related costs, amounted to €0.43 billion, compared with €0.44 billion in 2025.
Loan proceeds and repayments of loans issued amounted to €1.32 billion by the end of July 2026, compared with €0.06 billion in 2025. Loan repayments and lending to third parties totalled €2.11 billion, compared with €0.13 billion in 2025. Of this amount, €2.06 billion related to the repayment of external loans, while €0.05 billion related to the repayment of domestic loans.
Moreover, capital expenditure implementation stood at €165.7 million by the end of July 2026.
According to the Treasury, expenditure on co-financed projects and other financing expenditure reached €134.3 million.
Implementation of grants, contributions and subsidies amounted to €150 million, while social benefit expenditure amounted to €29.2 million.
The Treasury noted that, over the past decade, the average implementation rate for development expenditure by the end of July was 28%. In 2026, the implementation rate had reached 32%.
(Source: CNA)
