Cyprus recorded a €653.6 million budget surplus in the third quarter of 2025, according to preliminary figures released by the Statistical Service (CyStat). That surplus is lower than the €871 million recorded during the same period in 2024, but it’s still a solid buffer when public spending pressures are clearly growing.
State revenue rose modestly, up 2.6% compared to 2024, reaching just over €4.1 billion. A big chunk of that increase came from social contributions, which climbed by nearly €63 million, meaning more money flowing into the system from employers and workers, from VAT revenues, which rose by about €40 million, a sign that consumers are still spending, or at least spending enough to keep tax receipts healthy, and from services provided by the state and capital transfers.
Spending jumped sharply, up 10.3%, reaching €3.45 billion. The biggest increases were in social benefits, which rose by almost €98 million, reflecting higher support payments, in public sector pay and pensions, up more than €50 million, and in capital spending, which nearly doubled, driven by higher investments and capital transfers.