Cyprus government surplus rises to €665.2 million due to increased revenues

Cyprus’ general government recorded an increased surplus of €665.2 million during the first four months of 2024, corresponding to 2.1 per cent of GDP, compared to a surplus of €391 million, a share of 1.3 per cent of GDP, in the same period of 2023.

According to a report by the Cyprus Statistical Service (Cystat), this rise is mainly attributed to a significant increase in government revenues by 17.3 per cent, outpacing expenditure growth.

The boost in government revenues is primarily due to an 18.2 per cent rise in social contributions, a 17.5 per cent increase in income and wealth tax revenues, and a 10.7 per cent rise in production and import taxes, driven largely by higher net VAT receipts.

Total expenditure for January to April 2024 increased by 11.1 per cent.

Moreover, the report noted that total revenues for January to April 2024 increased by €650.3 million, reaching €4.415 billion compared to €3.765 billion in the same period of 2023.

Specifically, total taxes on production and imports increased by €146.8 million, amounting to €1.525 billion compared to €1.378 billion in 2023.

Net VAT receipts increased by €101.0 million, reaching €1.050 billion compared to €949.4 million in 2023.

Income and wealth tax revenues increased by €161.2 million, totalling €1.081 billion compared to €919.5 million in 2023. Social contributions rose by €204.8 million, reaching €1.330 billion compared to €1.125 billion in 2023.

Interest and dividend revenues increased by €3.1 million, totalling €36.7 million compared to €33.6 million in 2023. Current transfers increased by €26.6 million, reaching €124.8 million compared to €98.2 million in 2023.

Revenue from services increased by €91.6 million, reaching €295.2 million compared to €203.6 million in 2023. Capital transfers increased by €16.2 million, totalling €22.3 million compared to €6.1 million in 2023.

Total expenditure for January to April 2024, according to the Statistical Service, increased by €376.2 million, reaching €3.750 billion compared to €3.374 billion in the same period of 2023.

Intermediate consumption rose by €25.0 million, reaching €367.4 million compared to €342.4 million in 2023.

Employee compensation, including imputed social contributions and pensions of public servants, increased by €149.0 million, reaching €1.212 billion compared to €1.063 billion in 2023.

Social benefits increased by €152.7 million, reaching €1.493 billion compared to €1.340 billion in 2023. Current transfers increased by €39.6 million, reaching €280.4 million compared to €240.8 million in 2023.

Subsidies increased by €12.1 million, totalling €49.4 million compared to €37.3 million in 2023. Interest payments increased by €37.7 million, reaching €142.6 million compared to €105.0 million in 2023.

The capital account decreased by €39.9 million, totalling €205.8 million compared to €245.7 million in 2023.

Fixed capital investments decreased by €53.1 million, reaching €167.5 million compared to €220.6 million in 2023.

Other capital transfers increased by €13.2 million, totalling €38.3 million compared to €25.1 million in 2023.