Cyprus records half-year surplus of €155.5 million

Cyprus has recorded a fiscal surplus of €155.5 million, equivalent to 0.5 per cent of GDP, during the first half of 2023, according to the latest preliminary results, released on Monday by the state’s statistical service.

This marks a notable improvement compared to the same period in 2022 when Cyprus recorded a deficit of €92.4 million, accounting for 0.3 per cent of GDP.

During the first six months of 2023, total government revenue experienced a robust increase of €680.4 million, constituting a growth of 14.2 per cent.

The total revenue for this period reached €5.468.6 million, compared to €4.788.2 million in the corresponding period in 2022.

A detailed breakdown of the revenue sources indicated that taxes on production and imports saw a substantial rise of €241.9 million, an increase of 13.8 per cent, reaching €1.99 billion in 2023, compared to €1.75 billion in 2022.

Moreover, within this category, net VAT revenue witnessed a significant increase of €164.5 million, a rise of 14.2 per cent, totalling €1.32 billion, compared to €1.15 billion in 2022.

Moreover, revenue from taxes on income and wealth surged by €216.9 million, a rise of 21.2 per cent, amounting to €1.24 billion, compared to €1.02 billion in 2022.

Social contributions also played a part in the overall increase in revenue, rising by €230 million, an increase of 15.5 per cent, and totalling €1.7 billion in 2023, compared to €1.47 billion in 2022.

On the expenditure side, total government spending rose by €432.5 million, an increase of 8.9 per cent, reaching €5.31 billion during the first half of 2023, compared to €4.88 billion in the corresponding period in 2022.

Notably, social benefits saw a substantial increase of €212.6 million, a rise of 10.4 per cent, amounting to €2.25 billion in 2023, compared to €2.03 billion in 2022.

Meanwhile, the compensation of employees, including imputed social contributions and pensions of civil servants, also experienced a notable rise of €161.6 million, an increase of 11.1 per cent, reaching €1.62 billion in 2023, compared to €1.45 billion in 2022.

Despite the overall increase in expenditure, the capital account witnessed growth, rising by €43.0 million, an increase of 14.9 per cent, totalling €330.9 million in 2023, compared to €287.9 million in 2022.

Within this category, gross capital formation notably increased by €86.4 million, a rise of 42.9 per cent, reaching €287.9 million in 2023, compared to €201.5 million in 2022.

However, other capital expenditure decreased by €43.4 million, a drop of 50.2 per cent, totalling €43 million in 2023, compared to €86.4 million in 2022.

Finally, the Cyprus Statistical Service explained that it collected and analysed data for the General Government sector, covering all subsectors, based on the European System of Accounts 2010 (ESA 2010).