Treasury: Implementation of 2024 State Budget at 96% in revenue and 91% in expenditure

The implementation of the 2024 state budget reached 96% in terms of revenue, while actual expenditure stood at 91%, according to data published by the Treasury of the Republic.

More specifically, the state budget for 2024 recorded a 16% increase in revenue (€11.28 billion in 2024, compared to €9.77 billion in 2023) and a 13% increase in expenditure (€13.6 billion in 2024, compared to €12 billion in 2023). The projected revenue increase was mainly attributed to a rise in indirect and direct taxes by €0.68 billion and €0.61 billion, respectively. The projected increase in expenditure was primarily driven by higher loan repayments of €0.91 billion and an increase in salaries, pensions, and gratuities amounting to €0.40 billion.

Budget Implementation

According to the Treasury, total revenue in 2024 amounted to €10.81 billion, corresponding to 96% of the state budget (2023: €9.94 billion, 102%), while actual expenditure reached €12.42 billion, reflecting an implementation rate of 91% (2023: €10.92 billion, 91%).

As stated, budget implementation in terms of revenues showed a decline compared to the previous year (2024: 96%, 2023: 102%), mainly due to lower loan disbursements and lower implementation of indirect taxation.

Budget implementation in terms of expenditures remained at the same level as the previous year (2024: 91%, 2023: 91%).

Indirect taxes increased by €0.15 billion (4%) compared to 2023, primarily due to a rise in VAT revenues by €0.12 billion (€3.08 billion in 2024, compared to €2.96 billion in 2023).

Direct taxes increased by €0.58 billion (18%) compared to 2023, mainly due to higher income tax revenues from legal and natural persons (€3.47 billion in 2024, compared to €2.89 billion in 2023).

Loan disbursements by year-end increased by 3%, mainly due to higher disbursements of long-term foreign loans (€1.17 billion in 2024, compared to €1.14 billion in 2023).

(Source: CNA)