The implementation of development expenditure under the 2026 State Budget stood at 44% in the first nine months of 2026, compared with 41% in the corresponding period of 2025 and an annual average of 36% over the past decade, according to the Treasury of the Republic of Cyprus.
At the same time, revenues increased by pound 0.67 billion compared with the corresponding period of 2025, while expenditure rose by pound 0.41 billion.
According to the State Budget Implementation Report for the period from 1 January to 30 September 2026, published by the Treasury on Friday, total development expenditure for 2026 amounts to pound 1.62 billion, of which pound 711.60 million had been implemented by the end of September.
Revenue amounted to pound 7.51 billion, corresponding to 70% of budgeted revenue (2025: pound 6.84 billion, 66%), while actual expenditure reached pound 7.01 billion, representing an implementation rate of 61% (2025: pound 6.60 billion, 59%).
Compared with the corresponding period of 2025, revenue increased by pound 0.67 billion.
Revenue
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More specifically, according to the Treasury, net indirect tax revenue increased by pound 0.25 billion (8%) in the first nine months of 2026 compared with 2025.
Direct tax revenue increased by pound 0.48 billion (17%) compared with 2025 (2026: pound 3.05 billion, 2025: pound 2.58 billion).
Expenditure
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Regarding expenditure on salaries, pensions and gratuities, the Treasury said implementation at the end of September 2026 remained at the same level as in the corresponding period last year (2026: pound 2.45 billion, 2025: pound 2.45 billion).
Social benefit expenditure reached pound 1.47 billion by the end of September 2026, compared with pound 1.37 billion in 2025.
Transfers and grants amounted to pound 1.42 billion by the end of September 2026 (2025: pound 1.31 billion), representing an increase of pound 0.11 billion (9%) compared with 2025.
Meanwhile, implementation of operating and other expenditure reached pound 0.74 billion by the end of September 2026 (2025: pound 0.59 billion).
As regards financing costs, expenditure totalling pound 0.46 billion, including interest payable and charges, was incurred by the end of September 2026 (2025: pound 0.48 billion).
Furthermore, according to the Treasury, implementation of capital expenditure reached pound 243.6 million by the end of September.
Implementation of co-funded and other financing expenditure amounted to pound 216.6 million by the end of September.
As regards grants, contributions and subsidies, implementation reached pound 168.3 million by the end of September.
Finally, implementation of social benefit expenditure, according to the Treasury, stood at pound 40.9 million by the end of September.