Cyprus government surplus soars to €424.5 million

The Cyprus government’s surplus surged to €424.5 million in the January-June period, representing 1.3 per cent of GDP, compared to €62 million and 0.2 per cent of GDP during the same period in 2023, according to a report released on Wednesday by the Cyprus Statistical Service (Cystat).

According to the report, total revenue for the first half of 2024 increased by €800.1m, marking a 14.5 per cent rise to €6.31 billion, up from €5.51 billion in the corresponding period last year.

Notably, taxes on production and imports climbed by €127.8m, or 6.3 per cent, reaching €2.14bn compared to €2.01bn in 2023. Within this category, net VAT revenue, after deductions, rose by €88.4m, or 6.6 per cent, totalling €1.42bn compared to €1.34bn in the previous year. 

Income and wealth tax revenues saw an impressive increase of €224.9m, or 18.8 per cent, amounting to €1.42bn compared to €1.19bn in 2023.  

Social contributions also experienced a robust growth of €286.0m, or 16.5 per cent, reaching €2.01bn compared to €1.73bn last year. 

The upward trend continued with interest and dividends received, which increased by €18.7m, or 36.3 per cent, to €70.2m from €51.5m in 2023. Current transfers also grew, rising by €27.6m, or 19.0 per cent, to €173.2m compared to €145.6m in the previous year. 

Service revenues experienced a remarkable surge of €137.0m, or 43.0 per cent, totalling €455.4m compared to €318.4m in 2023.  

However, capital transfers saw a decline of €21.9m, or 45.4 per cent, falling to €26.3m from €48.2m last year. 

On the expenditure side, total spending for the January-June 2024 period rose by €437.5m, or 8.0 per cent, reaching €5.88bn compared to €5.45bn in the same period of 2023. Interim consumption increased by €47.9m, or 9.1 per cent, to €576.7m compared to €528.8m last year. 

Staff remuneration, including imputed social contributions and civil servant pensions, grew by €203.8m, or 12.5 per cent, totalling €1.83bn compared to €1.62bn in 2023.

Additionally, social benefits rose by €170.2m, or 7.7 per cent, to €2.37bn from €2.20bn in the previous year.

Current transfers increased by €80.7m, or 21.0 per cent, amounting to €464.6m compared to €383.9m in 2023. Interest payments also saw an increase, rising by €30.3m, or 15.5 per cent, to €226.4m from €196.0m last year. 

However, the capital account decreased by €66.2m, or 16.0 per cent, to €347.2m from €413.4m in 2023. Within this, fixed capital investments fell by €67.2m, or 18.8 per cent, to €290.9m compared to €358.1m in the previous year.  

Conversely, other capital transfers saw a slight increase of €1m, or 1.8 per cent, to €56.3m compared to €55.3m in 2023. 

In contrast, subsidies decreased by €29.2m, or 31.1 per cent, to €64.8m compared to €94m last year.