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Cyprus State Budget Implementation: Strong Revenue Growth, Stable Expenditure

by THEFUTURE.TEAM

February 17, 2025

Cyprus’s state budget for 2024 has shown solid performance, with revenue reaching 96% of projections and expenditure hitting 91%, according to the latest figures from the Treasury.

The 2024 budget saw a significant 16% increase in revenue, rising to €11.28 billion from €9.77 billion in 2023. This growth was largely driven by a rise in both indirect and direct taxes—up by €0.68 billion and €0.61 billion, respectively. Meanwhile, expenditure grew by 13%, totaling €13.6 billion, with the increase mainly attributed to higher loan repayments (€0.91 billion) and increases in salaries, pensions, and gratuities (€0.40 billion).

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Despite the strong revenue growth, total state revenue for 2024 amounted to €10.81 billion, or 96% of the budgeted target. This marks a slight decline compared to last year’s 102% revenue implementation rate, primarily due to lower loan disbursements and a slight reduction in indirect tax collection.

Expenditure for 2024 was in line with projections, maintaining the same 91% implementation rate as in 2023, amounting to €12.42 billion.

Key highlights include a €0.15 billion (4%) increase in indirect taxes, mainly from higher VAT revenues (€3.08 billion in 2024 versus €2.96 billion in 2023). Direct taxes also saw a notable increase, up by €0.58 billion (18%) to €3.47 billion, thanks to a rise in income tax revenues.

Loan disbursements have increased by 3%, with long-term foreign loans contributing to the rise (€1.17 billion in 2024, up from €1.14 billion in 2023).

Overall, the 2024 budget reflects Cyprus’s stable fiscal management, with robust revenue growth helping to cover higher expenditures, even as the government continues to manage its loan commitments.

€100 Million Approved for 2013 Crisis-Affected Depositors: What’s Next?

by News Editor

June 12, 2025

Recently, the Cyprus cabinet gave the green light to a substantial €100 million allocation aimed at addressing the losses suffered by depositors affected by the 2013 financial crisis. This initiative is part of the 2025 national solidarity fund.

Finance Minister Makis Keravnos announced that the beneficiaries for 2025 include individuals whose deposits and securities experienced an infamous ‘haircut’ due to stabilization measures during the crisis, particularly involving the Bank of Cyprus and Laiki Bank.

Who Benefits?

The reimbursement scheme allows partial compensation for the impacted individuals, with a maximum uninsured amount of €1,000,000 considered per impairment category. Additionally, the total cumulative reimbursement per person caps at €100,000. The initiative is poised to provide relief to approximately 13,000 people.

The net loss replacement will have a 10% rate for deposits lost at Laiki Bank and different rates for the bonds and deposits at the Bank of Cyprus—a 3.61% rate to be precise.

Path to Compensation

Eligible applicants will need to complete an online application process in June to confirm their entitled compensation amounts. The 2013 fiscal turmoil led larger depositors to shoulder the recapitalization of the Bank of Cyprus, with significant portions of uninsured deposits being converted into shares or wiped out entirely.

While the total verified losses for depositors and bondholders stood at €2 billion back then, this new scheme signifies a critical step towards repairing historical financial disruptions in the country.