Cyprus accelerates budget spending: 10% of development funds utilized by March

By the end of March 2026, Cyprus had implemented 10% of the development expenditure provided for in the state budget. According to the Treasury report, this figure exceeds both last year's level (9%) and the average values for the last decade.

The total volume of funds allocated for development in 2026 is 1.62 billion euros. During the first three months, 159.34 million euros were utilized, indicating a more active implementation of state projects.

Budget revenues reached 2.34 billion euros, or 22% of the annual plan, while expenditures amounted to 2.07 billion euros (18%). The main contribution to revenue growth came from direct taxes, which increased by 100 million euros due to higher corporate taxes. Indirect taxes rose by 30 million euros, mainly thanks to VAT receipts, which reached 0.8 billion euros.

There were no significant changes in the expenditure part: costs for salaries, pensions, and benefits remained at last year's level — 0.81 billion euros. However, social payments rose to 0.46 billion euros compared to 0.39 billion a year earlier, mainly due to increased healthcare spending. Transfers and subsidies amounted to 0.45 billion euros, an increase of 13%.

Capital expenditures reached 59.8 million euros and were directed at infrastructure development — the road network, government and school buildings, water supply, and sewerage systems. Additionally, 47.9 million euros were invested in co-financed projects, including support for education, industry, technology, and energy efficiency.

Separately, 37.2 million euros were directed in the form of grants and subsidies, including support for the country's leading educational and research institutions.

Experts note that the accelerated utilization of budget funds could contribute to economic growth, especially against the backdrop of external uncertainty, and support key sectors of the Cypriot economy.