Cyprus: Development Spending Up 24% in First Half of 2025

The implementation of development spending from the state budget showed a significant increase in the first half of 2025, reaching 24%, according to the Republic's General Accounting Office (ΓΛ). This percentage is up compared to 22% in the corresponding period of 2024 and the annual average of 21% for the last decade.

According to ΓΛ data, total development spending for the year amounts to €1.55 billion, with implementation reaching €370.82 million by the end of June, compared to €323.49 million in the same period last year.

The General Accounting Office report states that revenues at the end of June 2025 amounted to €4.23 billion, equivalent to 36% of the state budget, while actual expenditures amounted to €4.51 billion, representing an implementation rate of 35%. A decrease is observed compared to the corresponding period last year, mainly due to a decrease in Loan Drawdowns.

The state budget for 2025 shows a 4% increase in revenue and a 5% decrease in expenditure for the entire year. The increase in revenue is mainly due to the rise in direct and indirect taxes.

The implementation of capital expenditures amounted to €148.3 million, mainly due to spending on the road network. The implementation of social benefits amounted to €30.5 million, mainly due to the state scholarship program.

Source: ΚΥΠΕ