In the first half of 2026, the implementation of development expenditure from the 2026 state budget stood at 25%, compared with 25% in the corresponding period of 2025 and 22% of the annual average for the last decade, according to the Treasury of the Republic.
According to the Treasury’s figures, total development expenditure for the year 2026 amounts to 1.62 billion euros, and expenditure incurred by the end of the first half of the year stood at 412.39 million euros.
Specifically, according to the report ‘Implementation of the State Budget’ for the first half of 2026, published on Friday by the Treasury, revenue at the end of June 2026 stood at pound 4.44 billion, corresponding to 41 per cent of the state revenue budget (2025: pound 4.21 billion, 41 per cent), whilst actual expenditure stood at pound 4.63 billion, representing 40 per cent of the budget (2025: pound 4.41 billion, 40 per cent).
According to the Treasury, revenue has increased compared with the corresponding period last year, mainly due to a rise in revenue from indirect and direct taxes of pound 0.17 billion and pound 0.09 billion respectively.
‘The increase in expenditure compared with revenue is mainly due to a rise in expenditure on transfers and grants by pound 0.11 billion, operating expenditure by pound 0.08 billion and social benefits by pound 0.05 billion’, it is added.
Inflows from borrowings and repayments of loans issued in the first half of 2026 amounted to pound 1.25 billion (2025: pound 0.03 billion), whilst outflows from repayments and the issuance of loans amounted to pound 2.09 billion (2025: pound 0.11 billion).
With regard to the overall state budget for 2026, which is prepared on a cash basis, it shows a 5% increase in revenue for the year (2026: pound 10.78 billion, 2025: pound 10.31 billion) and an increase in expenditure of around 3% (2026: pound 11.44 billion, 2025: pound 11.13 billion).
According to the Treasury, the projected increase in revenue is mainly due to a rise in direct taxes of pound 0.13 billion and in grants of pound 0.33 billion, whilst the increase in expenditure is mainly due to a rise in operating expenditure of pound 0.36 billion.
As regards cash flows from borrowing, inflows and outflows of pound 1.9 billion and pound 2.28 billion, respectively, were budgeted, it is noted.
CNA/KST/KA/EPH/2026S, CYPRUS NEWS AGENCY