{"id":121521,"date":"2026-01-01T10:46:39","date_gmt":"2026-01-01T08:46:39","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=121521"},"modified":"2026-01-01T10:46:39","modified_gmt":"2026-01-01T08:46:39","slug":"tax-revenue-surges-amid-sharp-drop-in-state-borrowing","status":"publish","type":"post","link":"https:\/\/lamaisonestates.com\/ru\/tax-revenue-surges-amid-sharp-drop-in-state-borrowing\/","title":{"rendered":"Tax Revenue Surges Amid Sharp Drop in State Borrowing"},"content":{"rendered":"<p data-path-to-node=\"2\">A new report from the Treasury of the Republic of Cyprus reveals a diverging fiscal landscape for the first 11 months of 2025. While actual tax collections have seen a healthy boost, the overall &#8220;implementation&#8221; of the state revenue budget has slowed compared to last year\u2014primarily due to a significant reduction in government borrowing. Conversely, state spending is moving at a slightly faster pace than in 2024, driven by increased social transfers and subsidies.<\/p>\n<p data-path-to-node=\"3\">According to the Treasury&#8217;s State Budget Implementation Report, which tracks the period from January 1 to November 30, 2025, the state has realized 73% of its projected revenue, a drop from the 82% recorded during the same period in 2024.<\/p>\n<h3 data-path-to-node=\"5\"><b data-path-to-node=\"5\" data-index-in-node=\"0\">Revenue Dynamics: A Tale of Two Streams<\/b><\/h3>\n<p data-path-to-node=\"6\">The headline &#8220;decrease&#8221; in revenue implementation is somewhat deceptive. While the percentage of the budget met is lower, this is almost entirely due to a \u20ac1.05 billion reduction in loan withdrawals. When looking at the &#8220;earning&#8221; power of the state, the picture is much brighter:<\/p>\n<ul data-path-to-node=\"7\">\n<li>\n<p data-path-to-node=\"7,0,0\"><b data-path-to-node=\"7,0,0\" data-index-in-node=\"0\">Direct Taxes:<\/b> Rose by \u20ac0.17 billion (6%), fueled by a \u20ac0.13 billion increase in corporate and personal income tax.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"7,1,0\"><b data-path-to-node=\"7,1,0\" data-index-in-node=\"0\">Indirect Taxes:<\/b> Increased by \u20ac0.14 billion (4%), with VAT contributions leading the way at \u20ac2.92 billion.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"7,2,0\"><b data-path-to-node=\"7,2,0\" data-index-in-node=\"0\">Borrowing Slump:<\/b> By the end of November, loan withdrawals stood at just \u20ac0.09 billion, compared to a massive \u20ac1.14 billion in the previous year.<\/p>\n<\/li>\n<\/ul>\n<h3 data-path-to-node=\"8\"><b data-path-to-node=\"8\" data-index-in-node=\"0\">Expenditure: Social Spending on the Rise<\/b><\/h3>\n<p data-path-to-node=\"9\">Total state spending reached \u20ac9.59 billion by the end of November, representing a 74% implementation rate. This is slightly higher than the 71% pace seen in 2024.<\/p>\n<table data-path-to-node=\"10\">\n<thead>\n<tr>\n<td><strong>Expenditure Category<\/strong><\/td>\n<td><strong>Change (Year-on-Year)<\/strong><\/td>\n<td><strong>Main Drivers<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"10,1,0,0\"><b data-path-to-node=\"10,1,0,0\" data-index-in-node=\"0\">Social Security<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,1,1,0\">+\u20ac0.05 billion (3%)<\/span><\/td>\n<td><span data-path-to-node=\"10,1,2,0\">Higher health benefits and RES fund subsidies.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,2,0,0\"><b data-path-to-node=\"10,2,0,0\" data-index-in-node=\"0\">Transfers &amp; Subsidies<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,2,1,0\">+\u20ac0.14 billion (9%)<\/span><\/td>\n<td><span data-path-to-node=\"10,2,2,0\">Increased grants to municipalities and social security contributions.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,3,0,0\"><b data-path-to-node=\"10,3,0,0\" data-index-in-node=\"0\">Debt Servicing<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,3,1,0\">-\u20ac0.19 billion<\/span><\/td>\n<td><span data-path-to-node=\"10,3,2,0\">Lower interest and domestic loan repayments.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,4,0,0\"><b data-path-to-node=\"10,4,0,0\" data-index-in-node=\"0\">Wages &amp; Pensions<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,4,1,0\">-\u20ac0.03 billion<\/span><\/td>\n<td><span data-path-to-node=\"10,4,2,0\">Slight decline to \u20ac3.01 billion.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 data-path-to-node=\"12\"><b data-path-to-node=\"12\" data-index-in-node=\"0\">Development and Infrastructure Highlights<\/b><\/h3>\n<p data-path-to-node=\"13\">A bright spot in the report is the 56% implementation rate for development expenditure, which is significantly higher than the 50% ten-year average. The state has invested heavily in physical infrastructure and social support programs:<\/p>\n<ul data-path-to-node=\"14\">\n<li>\n<p data-path-to-node=\"14,0,0\"><b data-path-to-node=\"14,0,0\" data-index-in-node=\"0\">Roads &amp; Buildings:<\/b> \u20ac74.9 million was spent on the road network, with an additional \u20ac51.1 million for construction projects.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"14,1,0\"><b data-path-to-node=\"14,1,0\" data-index-in-node=\"0\">Education &amp; Research:<\/b> Significant sponsorships were directed to the University of Cyprus (\u20ac109.7 million) and the Cyprus University of Technology (\u20ac57.9 million).<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"14,2,0\"><b data-path-to-node=\"14,2,0\" data-index-in-node=\"0\">Green Energy &amp; Social Welfare:<\/b> The Renewable Energy Sources (RES) Fund received \u20ac44.5 million, while \u20ac18.4 million went toward subsidizing tuition and meals for children under four.<\/p>\n<\/li>\n<\/ul>\n<blockquote data-path-to-node=\"15\">\n<p data-path-to-node=\"15,0\">&#8220;The 2025 implementation rate of 74% for total expenditure remains slightly above the decade&#8217;s average of 73%, signaling a steady execution of state priorities despite shifting debt obligations.&#8221; \u2014 Treasury of the Republic of Cyprus<\/p>\n<\/blockquote>\n<p data-path-to-node=\"16\"><em>Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>A new report from the Treasury of the Republic of Cyprus reveals a diverging fiscal landscape for the first 11 months of 2025. While actual tax collections have seen a healthy boost, the overall &#8220;implementation&#8221; of the state revenue budget has slowed compared to last year\u2014primarily due to a significant reduction in government borrowing. Conversely, [&hellip;]<\/p>","protected":false},"author":9,"featured_media":121522,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/posts\/121521"}],"collection":[{"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/comments?post=121521"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/posts\/121521\/revisions"}],"predecessor-version":[{"id":121523,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/posts\/121521\/revisions\/121523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/media\/121522"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/media?parent=121521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/categories?post=121521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/ru\/wp-json\/wp\/v2\/tags?post=121521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}