Development expenditure under Cyprus\u2019 2025 state budget reached 24% by the end of June, outperforming both last year\u2019s mid-year execution rate of 22% and the 10-year average of 21%, according to figures released by the Treasury of the Republic on Thursday.<\/p>\n
The total allocation for development spending this year amounts to \u20ac1.55 billion. In the first six months, \u20ac370.8 million was disbursed, up from \u20ac323.5 million during the same period in 2024.<\/p>\n
State Budget Performance \u2013 January to June 2025<\/strong> The fall in revenue execution was largely due to a sharp decline in loan withdrawals, which dropped to \u20ac10 million from \u20ac1.03 billion a year earlier. Reduced debt servicing costs \u2013 with repayments and interest totalling \u20ac510 million versus \u20ac1.84 billion in 2024 \u2013 contributed to the lower expenditure execution rate.<\/p>\n Full-Year Targets and Revenue Drivers<\/strong> Indirect tax revenues rose by \u20ac80 million (4%) in the first half, boosted by VAT and consumption taxes. Direct taxes climbed by \u20ac180 million (13%), reflecting higher income tax collections from both individuals and corporations.<\/p>\n Expenditure Composition<\/strong> Capital expenditure stood at \u20ac148.3 million, with the largest share allocated to road projects (\u20ac40.9 million). Other investments included government buildings, educational facilities, water and sewage systems, and land acquisitions.<\/p>\n Co-funded projects received \u20ac92 million, covering initiatives such as early childhood care subsidies, home energy efficiency upgrades, and entrepreneurship support. Grants to universities and research institutions totalled \u20ac89.2 million, while \u20ac30.5 million was directed toward social programmes, including scholarships, cultural projects, and housing assistance.<\/p>\n Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":" Development expenditure under Cyprus\u2019 2025 state budget reached 24% by the end of June, outperforming both last year\u2019s mid-year execution rate of 22% and the 10-year average of 21%, according to figures released by the Treasury of the Republic on Thursday. The total allocation for development spending this year amounts to \u20ac1.55 billion. In the […]<\/p>","protected":false},"author":9,"featured_media":116847,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/116846"}],"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=116846"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/116846\/revisions"}],"predecessor-version":[{"id":116848,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/116846\/revisions\/116848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/116847"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=116846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=116846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=116846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The Treasury\u2019s report \u201cState Budget Execution, January\u2013June 2025\u201d<\/em> shows total state revenues at \u20ac4.23 billion (36% of the annual forecast) and expenditures at \u20ac4.51 billion (35% of the budget). Both figures are lower than in the first half of 2024, when revenues reached 43% and expenditures 42% of their respective annual projections.<\/p>\n
Despite the slower mid-year pace, the 2025 state budget anticipates total revenues of \u20ac11.75 billion, a 4% increase over last year, and expenditures of \u20ac12.95 billion, a 5% reduction. The projected revenue growth is underpinned by higher direct and indirect tax receipts, while lower debt payments and increased social benefits are shaping the spending side.<\/p>\n
Public sector payroll costs, including salaries, pensions, and gratuities, increased by 7% to \u20ac1.63 billion. Social benefits reached \u20ac910 million, slightly higher than last year, with increased healthcare spending offsetting a reduction in welfare payments.<\/p>\n