Cyprus general government deficit widens to €142.70 million in second quarter

Nicosia, Cyprus. The general government deficit reached €142.70 million in the April to June period of 2026, compared with €127.90 million a year before, according to preliminary figures from the Cyprus Statistical Service (Cystat). Spending increased at a quicker pace than revenue.

Revenue and expenditure

Total revenue climbed by €69.10 million, or 2 per cent, to €3.60 billion. The comparable figure for 2025 was €3.53 billion.

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Total expenditure grew by €84.00 million, or 2.3 per cent, reaching €3.74 billion, against €3.66 billion in the prior-year quarter.

Categories that increased

Cystat’s data indicate that stronger receipts from social contributions and from taxes on production and imports, especially value added tax (VAT), were partly cancelled out by lower income in other categories.

Social contributions went up by €81.10 million, or 6.9 per cent, to €1.26 billion, from €1.18 billion in the corresponding quarter of 2025.

Taxes on production and imports brought in €1.24 billion, which is €94.80 million, or 8.3 per cent, more than the €1.15 billion collected a year earlier. Net VAT revenue within this group rose by €140.50 million, or 19 per cent, to €879.40 million, compared with €738.90 million in the second quarter of 2025.

Categories that declined

Revenue from taxes on income and wealth decreased by €7.70 million, or 1.3 per cent, to €600.90 million, from €608.60 million.

Capital transfers fell by €31.10 million, or 26.2 per cent, to €87.60 million, down from €118.70 million a year earlier.

Other current transfers dropped by €32.20 million to €108.50 million, compared with €140.80 million in the second quarter of 2025.