Government posts €324.1 million surplus, highest in recent years

The Cypriot government posted a surplus of €324.1 million for the first quarter of 2023, according to the preliminary fiscal results released this week by the Cyprus Statistical Service (Cystat).

This figure represents 1.1 per cent of GDP and is an increase from the same period in 2022 when the surplus stood at €239.9 million, representing 0.9 per cent of GDP.

During the January-March 2023 period, total expenses increased by €253.6 million, amounting to €2.8 billion, up from €2.22 billion in the corresponding period of 2022.

Social benefits increased by 8.2 per cent, an increase of €75.9 million, and staff remuneration, including imputed social contributions and pensions of civil servants, increased by 9.4 per cent, a rise of €67.5 million.

Interim consumption increased by 16 per cent, a rise of €33.9 million, subsidies increased by 60.4 per cent, a rise of €12.5 million, and current transfers increased by 3.2 per, a rise of €5.3 million.

The capital account increased by 67.6 per cent, a rise of €67.1 million, growing to €166.3 million, with fixed capital investment increasing by 88 per cent, a rise of €64.5 million.

Other capital transfers increased by 10 per cent, a rise of €2.6 million, while interest paid decreased by 10 per cent, dropping by €8.6 million to €77.6 million.

Total revenues for the same period increased by 13.7 per cent, a figure of €337.8 million, reaching €2.8 billion, up from €2.46 billion in the corresponding period of 2022.

Total taxes on production and imports increased by 8 per cent or €72.5 million, with net VAT revenue, after deducting refunds, increasing by 2.2 per cent, a rise of €13.2 million, to €626.6 million.

Income and wealth tax revenues increased by 26.7 per cent, a rise of €162.7 million, social contributions increased by 15.1 per cent, a rise of €111 million, and interest and dividends received increased by 3.6 per cent, a rise of €0.8 million.

Capital transfers increased by 22 per cent with a rise of €0.9 million. However, current transfers decreased by 13.5 per cent, a drop of €6.4 million, and service income decreased by 2.5 per cent, a decline of €3.7 million.