Cyprus state budget execution reaches 50% revenue target by July 2026

As of the end of July 2026, the Cypriot state budget execution reached 50% for revenue and 47% for expenditure, according to the General Accounting Office. Both revenue and expenditure totaled €5.43 billion, reflecting a balanced execution in absolute figures. Compared to the same period in 2025, revenue increased by €0.26 billion, driven primarily by gains in indirect and direct taxes, which rose by €0.16 billion and €0.15 billion respectively.

Expenditure also rose by €0.26 billion over the 2025 levels, attributed to higher operational costs of €0.11 billion, increased transfers and grants of €0.09 billion, and rising social benefits of €0.08 billion. Notably, VAT collections significantly bolstered indirect tax revenue, growing by €0.20 billion to reach €1.98 billion. Direct tax growth was supported by a €0.16 billion increase in corporate and personal income tax receipts. Additionally, loan inflows amounted to €1.31 billion, while loan outflows reached €2.10 billion, marking a substantial shift compared to the figures recorded during the first seven months of 2025.