Nicosia, Cyprus. Cyprus’ state budget execution reached 35 per cent for revenue and 32 per cent for expenditure by the end of May 2026, according to data released by the Treasury on Monday. Revenue totalled €3.8 billion, while actual expenditure reached €3.7 billion.
Revenue performance
The Treasury said revenue at the end of May 2026 matched the 35 per cent implementation rate recorded during the same period in 2025, when revenue stood at €3.59 billion.
Total revenue increased compared with last year, mainly due to higher proceeds from indirect and direct taxes, which rose by €120 million and €110 million respectively.
Indirect taxes increased by €120 million, or 7 per cent, largely driven by higher value-added tax receipts, which rose to €1.42 billion from €1.28 billion in 2025.
Direct taxes rose by 8 per cent, with income tax from legal entities and individuals increasing by €110 million to €1.29 billion.
Expenditure trends
Actual expenditure reached €3.7 billion, corresponding to an implementation rate of 32 per cent, compared with €3.54 billion, or 32 per cent, in 2025.
The Treasury attributed the higher expenditure mainly to increased spending on transfers and subsidies by €70 million, social benefits by €40 million, and operational costs by €40 million.
Expenditure on salaries, pensions, and gratuities recorded a slight decrease of €10 million, falling to €1.35 billion from the previous year.
Social benefits
Spending on social benefits rose by €40 million, or 5 per cent, compared with 2025, reaching €820 million.
According to the Treasury, this increase was mainly due to higher spending on health, education, and housing support, which rose by €20 million, €10 million, and €10 million respectively.
