The implementation of development expenditure under the 2026 State Budget stood at 44% in the first nine months of 2026, compared with 41% in the corresponding period of 2025 and an annual average of 36% over the past decade, according to the Treasury of the Republic of Cyprus.
At the same time, revenues increased by €0.67 billion compared with the corresponding period of 2025, while expenditure rose by €0.41 billion.
According to the State Budget Implementation Report for the period from 1 January to 30 September 2026, published by the Treasury, total development expenditure for 2026 amounts to €1.62 billion, of which €711.60 million had been implemented by the end of September.
Revenue amounted to €7.51 billion, corresponding to 70% of budgeted revenue (2025: €6.84 billion, 66%), while actual expenditure reached €7.01 billion, representing an implementation rate of 61% (2025: €6.60 billion, 59%).
Compared with the corresponding period of 2025, revenue increased by €0.67 billion.
Revenue
More specifically, according to the Treasury, net indirect tax revenue increased by €0.25 billion (8%) in the first nine months of 2026 compared with 2025.
Direct tax revenue increased by €0.48 billion (17%) compared with 2025 (2026: €3.05 billion, 2025: €2.58 billion).
Expenditure
Regarding expenditure on salaries, pensions and gratuities, the Treasury said implementation at the end of September 2026 remained at the same level as in the corresponding period last year (2026: €2.45 billion, 2025: €2.45 billion).
Social benefit expenditure reached €1.47 billion by the end of September 2026, compared with €1.37 billion in 2025.
Transfers and grants amounted to €1.42 billion by the end of September 2026 (2025: €1.31 billion), representing an increase of €0.11 billion (9%) compared with 2025.
Meanwhile, implementation of operating and other expenditure reached €0.74 billion by the end of September 2026 (2025: €0.59 billion).
As regards financing costs, expenditure totalling €0.46 billion, including interest payable and charges, was incurred by the end of September 2026 (2025: €0.48 billion).
Furthermore, according to the Treasury, implementation of capital expenditure reached €243.6 million by the end of September.
Implementation of co-funded and other financing expenditure amounted to €216.6 million by the end of September.
As regards grants, contributions and subsidies, implementation reached €168.3 million by the end of September.
Finally, implementation of social benefit expenditure, according to the Treasury, stood at €40.9 million by the end of September.
(Source: CNA)
