Cyprus revenues exceeded expenditure by €500m in nine months — Cyprus Mail
In Cyprus, government revenue for January–September 2026 amounted to €7.51 billion, while actual expenditure stood at €7.01 billion. Thus, revenue exceeded spending by approximately €500 million, excluding cash flows related to government borrowing, Cyprus Mail reports, citing a Treasury report.
Over nine months, revenue reached 70% of the amount planned for the full year, while expenditure accounted for 61% of the annual budget. Compared with the same period in 2025, revenue increased by €670 million, while spending rose by €410 million.
Tax revenue increased
Direct and indirect taxes were the main source of revenue growth. Revenue from direct taxes increased by €480 million, or 17%, to €3.05 billion. Combined collections from personal and corporate income taxes rose by €470 million.
Indirect taxes increased by €250 million, or 8%, to around €3.25 billion. In particular, value-added tax revenue rose by €270 million, from €2.29 billion in the first nine months of 2025 to €2.56 billion in 2026.
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Expenditure and development financing
Salaries, pensions and severance payments remained the largest spending category at €2.45 billion, the same as last year. Social benefit expenditure increased by €100 million to €1.47 billion, while transfers and grants rose by €110 million to €1.42 billion. Operating and other expenses increased by €150 million to €740 million, including a €70 million rise in defence and police spending to €250 million.
The 2026 budget provides €1.62 billion for development financing, of which €711.6 million, or 44%, had been used by the end of September. This is higher than the 41% recorded during the same period of the previous year and above the ten-year average of 36%.
Capital expenditure amounted to €243.6 million, including €49.3 million allocated to the road network and €39.5 million to construction projects. A further €216.6 million was spent on co-financed projects and other financing expenditure.
