Cyprus turns deficit to surplus as revenue jumps by €1.15 billion

Cyprus’ recorded a general government surplus of €587 million, 2.2 per cent of GDP, during the first nine months of 2022, compared to a deficit of €453.3 million, 1.9 per cent of GDP, in the corresponding period last year, according to a report released on Wednesday by the Cyprus Statistical Service (Cystat).

Cyprus’ improved fiscal performance has been primarily attributed to an impressive increase in revenues, which rose by €1.15 billion, combined with a limited increase in expenses, which increased by a modest €115 million.

According to the preliminary financial results prepared by the Cyprus Statistical Service for the period between January and September 2022, total revenues increased by €1.15 billion, an increase of 16.9 per cent, reaching €7.98 billion overall, compared to €6.82 billion in the corresponding period of 2021.

Total expenses increased by €115.1 million, a rise of 1.6 per cent, amounting to €7.39 billion, compared to €7.28 billion in the corresponding period last year.

Total taxes on production and imports increased in the period between January and September 2022, rising by €416.2 million, an increase of 16.9 per cent, and amounted to €2.88 billion, compared to €2.46 billion in the same period from the previous year.

Of this amount, net VAT revenue, after a deduction of all refunds, increased by €332.9 million, a rise of 20.8 per cent, amounting to €1.93 billion, compared to €1.59 billion in 2021.

Income and wealth tax revenues increased by €378.8 million, a rise of 23.3 per cent, reaching €2 billion, compared to €1.62 billion in 2021.

Furthermore, social contributions increased by €279.7 million, a rise of 14.4 per cent, reaching €2.2 billion, compared to €1.93 billion in 2021.

In addition, revenue from services increased by €50.6 million, a rise of 11.3 per cent, amounting to €497.2 million, compared to €446.6 million in 2021.

Interest and dividends received increased by €1.5 million, a rise of 1.5 per cent, reaching €97.7 million, compared to €96.2 million in 2021.

Capital transfers increased by €28.9 million, a rise of 29.6 per cent, amounting to €126.4 million, compared to €97.5 million in 2021.

Conversely, current transfers decreased in the period between January and September 2022, falling by €0.3 million, a decline of 0.2 per cent, standing €153.2 million, compared to €153.5 million in the same period of 2021.

Meanwhile, social benefits increased by €263.8 million during the aforementioned period, rising by 9.7 per cent to reach €2.99 billion, compared to €2.73 billion in the corresponding period last year.

Staff remuneration, including social contributions and civil servant pensions, increased by €98.1 million, a rise of 4.7 per cent, reaching €2.18 billion, compared to €2.08 billion in 2021.

Interim consumption increased by €139.2 million, a rise of 21 per cent, reaching €802.6 million, compared to €663.4 million in 2021.

Current transfers increased by €8.6 million, a rise of 2 per cent, amounting to €449.2 million, compared to €440.6 million in 2021.

What is more, Cyprus’ capital account grew in the period between January and September 2022, rising by €121.1 million, an increase of 26.6 per cent, reaching €577.1 million, compared to €456 million in 2021.

Fixed investments capital increased by €64.2 million, a rise of 17.7 per cent, amounting to €426.3 million, compared to €362.1 million in 2021,

Moreover, other capital transfers increased by €56.8 million, a rise of 60.5 per cent, amounting to €150.8 million, compared to €94.0 million in 2021.

Subsidies decreased by €482.5 million, amounting to €60.8 million, compared to €543.3 million in 2021.

Finally, interest paid decreased by €33.2 million, a drop of 9.3 per cent, standing at €324.2 million, compared to €357.4 million in the same period of the previous year.