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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.

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Cyprus Unemployment At 4.2% In February 2026, Eurostat Data Show

Eurostat data show that Cyprus recorded a lower unemployment rate in February 2026, while rates in the euro area increased every month.

Strong Performance In Cyprus

Cyprus reported an unemployment rate of 4.20% in February 2026, down from 4.50% in February 2025. The number of unemployed declined from about 23,000 to 22,000 individuals over the same period.

Euro Area Trends And Broader EU Dynamics

Across the euro area, the seasonally adjusted unemployment rate rose to 6.20% in February 2026 from 6.10% in January. On an annual basis, the rate declined from 6.30% in February 2025. Across the European Union, unemployment stood at 5.90% in February 2026, compared to 6.00% a year earlier.

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Youth And Gender Disparities

Youth unemployment in the EU reached 15.30%, with 2,957,000 individuals under 25 recorded as unemployed. Female unemployment in the EU increased to 6.10% in February from 6.00% in January, while the male rate remained at 5.70%. Similar trends were observed in the euro area.

Conclusion: A Mixed Economic Landscape

Monthly data show an increase in the number of unemployed by 137,000 in the EU and 93,000 in the euro area. Annual figures indicate a decline in unemployment rates, while Cyprus maintains a lower level compared to EU and euro area averages.