{"id":115533,"date":"2025-07-02T19:43:35","date_gmt":"2025-07-02T16:43:35","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=115533"},"modified":"2025-07-02T19:43:35","modified_gmt":"2025-07-02T16:43:35","slug":"cyprus-sees-notable-increase-in-state-revenue-while-spending-remains-controlled","status":"publish","type":"post","link":"https:\/\/lamaisonestates.com\/he\/cyprus-sees-notable-increase-in-state-revenue-while-spending-remains-controlled\/","title":{"rendered":"Cyprus Sees Notable Increase in State Revenue While Spending Remains Controlled"},"content":{"rendered":"<p data-start=\"115\" data-end=\"291\">Cyprus recorded robust revenue growth in the first five months of 2025, while keeping a steady grip on government spending, according to data from the Treasury of the Republic.<\/p>\n<p data-start=\"293\" data-end=\"685\">From January to May 2025, total government income reached \u20ac3.61 billion, marking an 8% rise compared to the same period in 2024 (\u20ac3.33 billion). This jump is largely thanks to a \u20ac140 million surge in direct tax collections and a \u20ac70 million increase in indirect taxes. Overall, revenues now account for 31% of the yearly budget, slightly ahead of the 30% recorded at the same point last year.<\/p>\n<p data-start=\"687\" data-end=\"916\">Spending during the same period stood at \u20ac3.62 billion, representing 28% of the total budget\u2014again slightly higher than last year\u2019s 27%. Most of this was due to a 7% rise in the public sector payroll, which totaled \u20ac1.36 billion.<\/p>\n<p data-start=\"918\" data-end=\"948\">Breaking down the tax gains:<\/p>\n<ul data-start=\"949\" data-end=\"1160\">\n<li data-start=\"949\" data-end=\"1047\">\n<p data-start=\"951\" data-end=\"1047\"><strong data-start=\"951\" data-end=\"969\">Indirect taxes<\/strong> rose by 4%, primarily from increased VAT and other consumption-based taxes.<\/p>\n<\/li>\n<li data-start=\"1048\" data-end=\"1160\">\n<p data-start=\"1050\" data-end=\"1160\"><strong data-start=\"1050\" data-end=\"1066\">Direct taxes<\/strong> jumped 11%, fueled by higher income tax contributions from both individuals and corporations.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1162\" data-end=\"1185\">On the spending side:<\/p>\n<ul data-start=\"1186\" data-end=\"1570\">\n<li data-start=\"1186\" data-end=\"1270\">\n<p data-start=\"1188\" data-end=\"1270\"><strong data-start=\"1188\" data-end=\"1207\">Social benefits<\/strong> rose by 3%, mainly due to increased healthcare expenditures.<\/p>\n<\/li>\n<li data-start=\"1271\" data-end=\"1411\">\n<p data-start=\"1273\" data-end=\"1411\"><strong data-start=\"1273\" data-end=\"1300\">Transfers and subsidies<\/strong> were up 13%, linked to higher payments into the Social Insurance Fund and more funding to local governments.<\/p>\n<\/li>\n<li data-start=\"1412\" data-end=\"1513\">\n<p data-start=\"1414\" data-end=\"1513\"><strong data-start=\"1414\" data-end=\"1446\">Loan and interest repayments<\/strong> significantly dropped to \u20ac270 million from \u20ac530 million in 2024.<\/p>\n<\/li>\n<li data-start=\"1514\" data-end=\"1570\">\n<p data-start=\"1516\" data-end=\"1570\"><strong data-start=\"1516\" data-end=\"1558\">Operational and miscellaneous expenses<\/strong> fell by 9%.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1572\" data-end=\"1774\">The overall budget execution\u201428% of the final forecast\u2014is consistent with Cyprus\u2019s long-term average, excluding the unusual spending patterns seen from 2020\u20132022 due to pandemic-related debt repayments.<\/p>\n<p data-start=\"1776\" data-end=\"1955\">On the development front, the government had spent \u20ac304 million by the end of May, exceeding the ten-year average and representing 20% of the annual development budget. Of that:<\/p>\n<ul data-start=\"1956\" data-end=\"2503\">\n<li data-start=\"1956\" data-end=\"2092\">\n<p data-start=\"1958\" data-end=\"2092\"><strong data-start=\"1958\" data-end=\"1974\">\u20ac116 million<\/strong> went to capital investments, including \u20ac31.5 million on roads and additional funds for state buildings and schools.<\/p>\n<\/li>\n<li data-start=\"2093\" data-end=\"2226\">\n<p data-start=\"2095\" data-end=\"2226\"><strong data-start=\"2095\" data-end=\"2110\">\u20ac72 million<\/strong> was directed to EU co-financed projects like the \u201cSave \u2013 Upgrade Homes\u201d program and entrepreneurship initiatives.<\/p>\n<\/li>\n<li data-start=\"2227\" data-end=\"2442\">\n<p data-start=\"2229\" data-end=\"2442\"><strong data-start=\"2229\" data-end=\"2246\">\u20ac81.5 million<\/strong> in grants supported public universities and research institutions, with major portions going to the University of Cyprus (\u20ac46.2 million) and the Cyprus University of Technology (\u20ac25.6 million).<\/p>\n<\/li>\n<li data-start=\"2443\" data-end=\"2503\">\n<p data-start=\"2445\" data-end=\"2503\"><strong data-start=\"2445\" data-end=\"2462\">\u20ac27.3 million<\/strong> was paid out in social welfare benefits.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"2505\" data-end=\"2626\">All in all, the figures show strong fiscal performance backed by healthy tax inflows and a balanced approach to spending.<\/p>\n<p data-start=\"2505\" data-end=\"2626\"><em data-start=\"86\" data-end=\"113\">Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Cyprus recorded robust revenue growth in the first five months of 2025, while keeping a steady grip on government spending, according to data from the Treasury of the Republic. From January to May 2025, total government income reached \u20ac3.61 billion, marking an 8% rise compared to the same period in 2024 (\u20ac3.33 billion). This jump [&hellip;]<\/p>","protected":false},"author":9,"featured_media":115534,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/115533"}],"collection":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/comments?post=115533"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/115533\/revisions"}],"predecessor-version":[{"id":115535,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/115533\/revisions\/115535"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/115534"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=115533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=115533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=115533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}