By the end of October 2025, Cyprus had collected 65% of its planned state revenues, while government spending reached just 59% of the budget, according to the republic’s General Accounting Office.
Revenues totaled 7.63 billion euros, down from €8.48 billion at the same point last year, largely due to a sharp decline in loans. At the same time, expenditures amounted to €7.68 billion, compared with €8.77 billion in 2024.
The slowdown in revenue collection was partially offset by modest increases in both direct and indirect taxes. Value-added tax, consumption taxes, and corporate and personal income taxes all showed slight gains, while borrowing fell dramatically, from €1.14 billion last year to just €90 million this year.
On the spending side, the government’s largest outlays, salaries, pensions and gratuities remained largely steady at €2.73 billion. Repayments on loans and interest dropped sharply to €820 million, down from €2 billion in 2024, reflecting the timing of debt payments. Social spending rose slightly to €1.51 billion, driven by contributions to renewable energy programs and modest increases in health benefits, while social welfare payouts dipped slightly.Â