The Treasury of the Republic of Cyprus released its report on state budget implementation for the first half of 2026 on Friday, July 24, 2026. The data indicates that development expenditure reached 412.39 million euros, representing a 25 percent execution rate of the 1.62 billion euro annual budget. This figure remains consistent with the same period in 2025 and sits above the ten-year average of 22 percent.

Total state revenue through June 2026 amounted to 4.44 billion euros, accounting for 41 percent of the annual projection, compared to 4.21 billion euros during the same period in 2025. Actual expenditure for the first half of the year reached 4.63 billion euros, marking a 40 percent execution rate. The Treasury attributes the increase in revenue primarily to a 170 million euro rise in indirect taxes and a 90 million euro increase in direct taxes. Meanwhile, the growth in expenditures is linked to higher transfer payments, grants, operational costs, and social benefits.