The implementation of the state budget for 2025 reached 87% for revenues and 92% for actual expenditures, according to a report of the Treasury published on Tuesday.
Specifically, the report stated that in 2025 revenues amounted to €10.20 billion, corresponding to 87% of the state budget (2024: €10.81 billion, 96%), while actual expenditures reached €11.99 billion, corresponding to an implementation rate of 92% (2024: €12.42 billion, 91%).
Over the past decade, the average implementation rate of the state budget’s total expenditures stood at 91%, the Treasury noted.
Lower loan repayments
According to the report, revenues show a decrease compared to the corresponding period last year, mainly due to a reduction in loan proceeds by €1.07 billion, which was offset by an increase in direct and indirect taxes of €0.37 billion and €0.17 billion, respectively.
The slight decrease in expenditures is mainly attributed to lower loan repayments by €0.84 billion, combined with increased spending on social benefits and on transfers and grants by €0.10 billion and €0.18 billion, respectively.
In 2025, indirect taxes increased by €0.17 billion (4%) compared to 2024, mainly due to higher VAT revenues of €0.08 billion (2025: €3.16 billion; 2024: €3.08 billion), higher revenues from other indirect taxes by €0.04 billion (2025: €0.55 billion; 2024: €0.51 billion), and higher excise duty revenues by €0.04 billion (2025: €0.58 billion; 2024: €0.54 billion).
As reported, loan proceeds in 2025 amounted to €0.10 billion (2024: €1.17 billion). The decrease compared to 2024 is due to a €1 billion loan being taken in January 2026 instead of December 2025, as originally budgeted.
Taxes and wages
Loan and interest repayments for 2025 amounted to €2.54 billion (2024: €3.38 billion), of which €1.63 billion (2024: €2.11 billion) related to the repayment of external loans, €0.72 billion (2024: €0.88 billion) to interest payments and borrowing charges, and €0.19 billion (2024: €0.39 billion) to the repayment of domestic loans.
At the same time, direct taxes increased by €0.37 billion (6%) compared to 2024, mainly due to an increase in corporate and personal income tax revenues by €0.32 billion (2025: €3.79 billion; 2024: €3.47 billion).
Expenditure on wages, pensions and gratuities in 2025 showed a slight decrease of €0.04 billion (2025: €3.52 billion; 2024: €3.56 billion).
Benefits
Spending on social benefits in 2025 amounted to €2.02 billion (2024: €1.92 billion). The increase of €0.10 billion (5%) is mainly attributed to higher healthcare benefits by €0.08 billion (2025: €0.90 billion; 2024: €0.82 billion) and a grant to the Renewable Energy Sources Fund of €0.04 billion (2024: €0.01 billion). At the same time, social welfare benefits decreased by €0.02 billion (2025: €0.71 billion; 2024: €0.73 billion).
Transfers and grants in 2025 amounted to €1.93 billion (2024: €1.75 billion), recording an increase of €0.18 billion (11%) compared to 2024. Operating and other expenses in 2025 amounted to €1.12 billion (2024: €1.15 billion), recording a decrease of €0.03 billion (3%).
According to the report, the implementation of capital expenditure in 2025 amounted to €469.3 million, while the implementation of co-financed projects reached €336.3 million. As regards grants, contributions and subsidies, their implementation in 2025 amounted to €245.9 million.
CNA