In January–August 2024, Cyprus reports a government surplus of €1.37 billion

Cyprus has recorded a notable government surplus of €1.37 billion for the period from January to August 2024, reflecting an increase of €469.9 million compared to the same timeframe in 2023. According to preliminary fiscal data from the Cyprus Statistical Service, this surplus represents 4.3% of the country's GDP, up from a surplus of €898.5 million (3.0% of GDP) in the previous year.

Revenue growth of 13%

The overall income for the January-August 2024 period increased to €9.30 billion, showing an increase of €1.07 billion (13.0%) from €8.23 billion in the same period of 2023. The increase in production and import taxes, which increased by €275.4 million (9.8%) to reach €3.07 billion from €2.80 billion in 2023, was a major factor in the revenue growth.

In addition, net VAT revenue increased significantly by €247.2 million (13.6%) to reach €2.07 billion as opposed to €1.82 billion the previous year. Moreover, wealth and income taxes increased by €371.7 million (17.3%) to €2.52 billion from €2.15 billion in 2023.

Social contributions increased by €365.7 million (15.7%), amounting to €2.69 billion, up from €2.33 billion the previous year. Interest and dividend income rose by €21.4 million (31.1%), reaching €90.3 million, compared to €68.9 million in 2023. Service revenue also had a significant increase of €143.4 million (30.2%), totaling €618.4 million compared to €475.0 million in the prior year.

However, current transfers decreased by €71.4 million (-23.5%), totaling €232.9 million, down from €304.3 million in 2023. Capital transfers also fell by €32.8 million (-31.2%), amounting to €72.2 million, compared to €105.0 million the previous year.

Expenditure increases by 8.2%

Total expenditure during the same period increased by €603.5 million (8.2%), reaching €7.93 billion, compared to €7.33 billion in 2023. This rise in expenditure was primarily driven by personnel compensation, which increased by 12.0%, and social benefits, which rose by 8.4%.

Intermediate consumption grew by €49.9 million (6.5%), reaching €818.2 million compared to €768.3 million in 2023. Personnel compensation, including imputed social contributions and pensions for public employees, rose by €262.4 million (12.0%), totaling €2.45 billion, up from €2.19 billion in the previous year. Social benefits also increased by €242.3 million (8.4%), and reached €3.13 billion compared to €2.89 billion in 2023. Current transfers increased by €117.3 million (23.6%), totaling €614.9 million, compared to €497.6 million in 2023. Interest payments had an increase of €37.0 million (14.2%), amounting to €298.6 million, up from €261.6 million in the previous year.

On the other hand, capital account expenditure decreased by €74.3 million (-12.4%), totaling €526.0 million compared to €600.3 million in 2023. Within this category, fixed capital investments fell by €69.4 million (-13.9%), reaching €429.3 million from €498.7 million in 2023, and other capital transfers decreased by €4.9 million (-4.8%), amounting to €96.7 million compared to €101.6 million in the previous year.

Furthermore, subsidies had a decline of €31.2 million (-26.5%), totaling €86.6 million, down from €117.8 million in 2023.