The implementation percentage of the development expenditure of the state budget reached 22% in the end of June, compared to 21% which is the average of the last decade until June, reaching €323,498,228, out of the total development costs of €1,489,204,940, the Treasury of the Republic of Cyprus said Friday.

According to the "Implementation of the State Budget", June 2024 edition, issued by the Treasury, at the end of June total revenue amounted to €4.89 billion, which corresponds to 43% of the state budget (2023: €4.70 billion, 48%) while actual expenditure amounted to €5.65 billion, which corresponds to an implementation of 43% (2023: €4.36 billion, 36%).

The Treasury says that the implementation of the state budget, in terms of revenue, shows a decrease compared to the corresponding period last year (2024: 43%, 2023: 48%), mainly due to a decrease in the percentage of implementation of the indirect taxes budget (2024: 45%, 2023: 51%).

Compared to the corresponding period last year, there is an increase in the implementation of the state budget in relation to expenditure (2024: 43%, 2023: 36%), mainly due to increased outflows from the EMTN repayment (2024: €1.02 billion, 2023: €0). It is noted that the state budget, which is prepared on a cash basis, shows for the year 2024 an increase in revenue by 16% (2024: €11.28 billion, 2023: €9.77 billion) and an increase in expenses of 9% (2024: €13.1 billion, 2023: €12 billion).

It notes that the increase in revenue is mainly due to an increase in indirect and direct taxes by €0.68 billion and €0.61 billion, respectively, while the increase in expenditure is mainly attributed to the increase in loan and interest repayments, and payroll, pensions and gratuities by €0.77 billion and €0.35 billion, respectively.

Indirect taxes increased by €0.07 billion (4%), compared to 2023, mainly due to the increase in VAT revenue by €0.06 billion (2024: €1.46 billion, 2023: €1.40 billion). Direct taxes increased by €0.20 billion (20%) compared to 2023, mainly due to an increase in the Income Tax of Legal and Natural Persons (2024: €1.24 billion, 2023: €1 billion). By the end of June, borrowing decreased by €0.05 billion (2024: €1.03 billion, 2023: €1.08 billion)

As regards expenditure related to payroll, pensions, gratuities, it says that the implementation at the end of June shows an increase of 5% (€0.07 billion) from €1.46 billion in 2023 to €1, 53 billion in 2024.

The repayments until the end of June amounted to €1.84 billion (2023: €0.65 billion), of which €1.06 billion (2023: €0.33 billion) concern the repayment of foreign loans, the € 0.46 billion (2023: €0.36 billion) of borrowing interest and charges and €0.32 billion (2023: 0.26 billion) repayment of domestic loans.

It says that social benefits expenditure until the end of June amounted to €0.90 billion (2023: €0.82 billion). The increase of €0.08 billion (10%) is due to the increased expenditure on social welfare benefits by €0.05 billion (2024: €0.40 billion, 2023: €0.35 billion) and the increased expenditure on health by €0.03 billion (2024: €0.36 billion, 2023: €0.33).

Moreover, it says that the implementation of development expenditure until June amounted to €126.5 million and is mainly due to the cost for the road network, amounting to €45.6 million, the cost for construction projects, amounting to €17 million, the expenses for the construction, expansion and improvements of school buildings, amounting to €13.5 million, the expenses for the purchase of land and buildings, amounting to €13 million, the expenses for sewerage and water systems, amounting to 10.2 million, the expenses for the purchase of  machinery, amounting to €7.6 million, and the expenses for the purchase of equipment, amounting to €6.8 million.