Cyprus has released its Fiscal Report for 2025, a constitutionally mandated annual review of state finances that details government revenue, expenditure and borrowing for the year.
According to the Treasury, total revenue — excluding loan‑related inflows — reached €10.05 billion in 2025, up from €9.57 billion the previous year. Total expenditure — excluding loan repayments and new lending — amounted to €10.15 billion, compared with €9.89 billion in 2024. This resulted in a preliminary budget deficit of €100 million before accounting for borrowing flows.
Once loan inflows (€0.16 billion) and outflows (€1.85 billion) were included, the state recorded a net budget deficit of €1.79 billion, higher than the €1.61 billion deficit in 2024.
Taxation remained the government’s main revenue source, generating €8.6 billion — about 86% of total income — split between indirect taxes (44%) and direct taxes (42%).
Major spending categories included:
- €3.52 billion for salaries, pensions and gratuities
- €2.02 billion for social benefits, including €820 million in state contributions to the national health system
- €1.67 billion in transfers to public bodies, local authorities, the EU and international organizations
Public debt, excluding intra‑government borrowing, fell to €19.24 billion at the end of 2025, down from €20.92 billion a year earlier.
The report was submitted to the finance minister on March 12, approved by the Cabinet on March 16 and tabled in parliament on March 23. It includes the findings of the Auditor‑General, whose assessment forms an integral part of the final document.