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.
