Nicosia, Cyprus. Cyprus implemented 87 per cent of its 2025 state budget revenue target and 92 per cent of planned expenditure, according to a Treasury report published on Tuesday. Total revenues reached €10.20 billion and actual expenditures totalled €11.99 billion.
Revenue performance and comparison with 2024
Total revenues for 2025 amounted to €10.20 billion, representing 87 per cent of the budgeted amount, compared to €10.81 billion and a 96 per cent implementation rate in 2024.
Revenues decreased from the previous year mainly due to a €1.07 billion drop in loan withdrawals, which was partially offset by increases in direct and indirect taxes.
Expenditure and long-term implementation rate
Actual expenditures reached €11.99 billion, corresponding to an implementation rate of 92 per cent, slightly higher than the 91 per cent recorded in 2024 when spending stood at €12.42 billion.
The Treasury reported that over the last decade, the average implementation rate for total state budget expenditure has remained steady at 91 per cent.
The slight reduction in overall expenditure was mainly attributed to a €0.84 billion decrease in loan repayments, combined with higher spending on social benefits and transfers.
Tax receipts and loan activity
Direct taxes rose by €0.37 billion and indirect taxes increased by €0.17 billion over the course of the year.
Indirect taxes grew by 4 per cent compared to 2024, supported by an €0.08 billion increase in VAT receipts, which reached €3.16 billion.
Direct taxes increased by 6 per cent to €3.79 billion, largely driven by a €0.32 billion rise in personal and corporate income tax.
Loan withdrawals for 2025 were limited to €0.10 billion compared to €1.17 billion in 2024, as a planned €1 billion loan was withdrawn in January 2026 instead of December 2025.
What do you think the lower level of loan withdrawals indicates about Cyprus’ 2025 financing needs?