Cyprus government records €315.1 million surplus, boosted by increased revenues

The Cyprus general government recorded a fiscal surplus of €315.1 million, equivalent to 1.1 per cent of GDP, between January and May 2023, according to a report by the state’s statistical service.

It should be noted that the report utilised preliminary data which will be revised and confirmed at a later date.

This surplus represents an increase of €173.5 million compared to the same period last year when a surplus of €141.6 million, equivalent to 0.5 per cent of GDP, was recorded.

Moreover, total revenues of the general government for the period January to May 2023 increased by 14.1 per cent, reaching a total of €4.64 billion.

This increase is mainly attributed to higher taxes on production and imports, as well as income and wealth taxation.

Specifically, total taxes on production and imports increased by €210.9 million (13.8 per cent), reaching €1.74 billion compared to €1.53 billion in 2022.

Net VAT revenues (after refunds) increased by €153.8 million (14.9 per cent), reaching €1.18 billion compared to €1.03 billion in 2022.

Income and wealth taxes increased by €180.3 million (20.5 per cent), reaching €1.05 billion compared to €879.1 million in 2022.

Social contributions increased by €182.4 million (14.8 per cent), reaching €1.41 billion compared to €1.23 billion in 2022.

Interest and dividend receipts increased by €2 million (4.8 per cent), reaching €43.7 million compared to €41.7 million in 2022.

Current transfers increased by €25.2 million (29 per cent), reaching €112.2 million compared to €87 million in 2022.

On the other hand, capital transfers decreased by €22.8 million (59.2 per cent), amounting to €15.7 million compared to €38.5 million in 2022.

Service revenues decreased by €4.0 million (1.5 per cent), amounting to €260.5 million compared to €264.5 million in 2022.

Total expenditures for the period January to May 2023 increased by 10.2 per cent, reaching a total of €4.33 billion. This increase is mainly due to higher social benefits and personnel compensation.

According to the preliminary data, social benefits increased by €139.7 million (8.7 per cent), reaching €1.75 billion, compared to €1.61 billion in 2022.

Personnel compensation (including social security contributions and pensions for public employees) increased by €127.2 million (10.5 per cent), reaching €1.33 billion, compared to €1.2 billion in 2022.

Intermediate consumption increased by €4.3 million (1 per cent), amounting to €425.4 million compared to €421.1 million in 2022.

Subsidies increased by €30.6 million (96.5 per cent), amounting to €62.3 million, compared to €31.7 million in 2022.

Interest paid increased by €9.6 million (5.5 per cent), reaching €185.1 million compared to €175.5 million in 2022.

The capital account increased by €95.4 million (45.8 per cent) and reached €303.5 million compared to €208.1 million in 2022.

Specifically, fixed capital investments increased by €75.6 million (51.0 per cent) and amounted to €223.8 million compared to €148.2 million in 2022, while other capital transfers increased by €19.8 million (+33.1 per cent) and reached €79.7 million compared to €59.9 million in 2022.

In contrast, current transfers decreased by €6.3 million (-2.3 per cent) and were limited to €266.8 million compared to €273.1 million in 2022.