Development spending implementation reached 37% at the end of August 2026, compared with 37% in the corresponding period of 2025 and 32% of the ten-year annual average, with revenue implementation reaching 63% and actual expenditure 53%, according to the Treasury of the Republic.
Development spending implementation amounted to pound 603.29 million in the first eight months of 2026, out of total projected development expenditure of pound 1.625 billion.
Specifically, according to the ‘State Budget Implementation’ report for the period January 1-August 31, 2026, published by the Treasury on Tuesday, revenue at the end of August stood at pound 6.8 billion, corresponding to 63% of the state revenue budget (2025: pound 6.06 billion, 59%), while actual expenditure amounted to pound 6.14 billion, corresponding to implementation of 53% (2025: pound 5.85 billion, 53%). Compared with the corresponding period of 2025, according to the Treasury, revenue increased by pound 0.74 billion, mainly due to an increase in revenue from direct and indirect taxes of pound 0.58 billion and pound 0.21 billion, respectively.
Borrowing inflows at the end of August 2026 amounted to pound 1.35 billion (2025: pound 0.07 billion), while borrowing outflows stood at pound 2.13 billion (2025: pound 0.14 billion).
Revenue
More specifically, regarding revenue during the first eight months of 2026, according to the Treasury, indirect taxes increased by a net pound 0.21 billion (8%) compared with 2025, mainly due to an increase in VAT revenue of pound 0.23 billion (2026: pound 2.29 billion, 2025: pound 2.06 billion), while direct taxes increased by pound 0.58 billion (23%) compared with 2025, due to an increase in income tax paid by legal entities and individuals of pound 0.58 billion (2026: pound 2.81 billion, 2025: pound 2.23 billion).
Expenditure
Regarding expenditure on salaries, pensions and gratuities, according to the Treasury, implementation was at the same level as in the corresponding period last year (pound 2.16 billion in both 2026 and 2025).
Social benefit expenditure amounted to pound 1.23 billion at the end of August 2026, compared with pound 1.20 billion in 2025.
Transfers and grants amounted to pound 1.28 billion (2025: pound 1.20 billion), representing a net increase of pound 0.08 billion (7%) compared with 2025.
Meanwhile, implementation of operating and other expenditure stood at pound 0.65 billion at the end of August 2026 (2025: pound 0.50 billion).
Regarding financing expenditure, financing costs including interest payable and expenses amounted to pound 0.43 billion at the end of August 2026 (2025: pound 0.44 billion).
According to the Treasury, implementation of capital expenditure amounted to pound 198.7 million at the end of August 2026.
Implementation of co-financed and other financing expenditure amounted to pound 169.7 million.
Implementation of grants, contributions and subsidies amounted to pound 164.0 million.
Finally, implementation of social benefit expenditure amounted to pound 31.2 million, according to the Treasury.