Cyprus government records €881.9 million surplus

Cyprus has reported a government surplus of €881.9 million, equivalent to 3.1 per cent of the Gross Domestic Product (GDP), according to preliminary fiscal results released by the state’s statistical service for the period of January to August 2023.

This surplus represents a significant increase of 1.9 percentage points compared to the same period in 2022 when the surplus amounted to €328.4 million, representing 1.2 per cent of GDP.

The fiscal data shows a substantial increase in revenues for the period of January to August 2023, reaching €8.14 billion, which marks a notable rise of €1.17 billion (16.8 per cent), when compared to the corresponding period in 2022.

Key contributors to the increased revenues include taxes on production and imports, which rose by €366.3 million (15.4 per cent), while net Value Added Tax (VAT) revenues increased by €300.6 million (20.0 per cent).

Additionally, revenues from income and wealth taxation increased by €282.7 million (15.2 per cent), reaching €2.13 billion compared to €1.85 billion in 2022.

Social contributions increased by €312.4 million (15.6 per cent), totalling €2.31 billion compared to €2 billion in 2022.

Current transfers increased by €62.5 million (49.8 per cent), reaching €188.0 million compared to €125.5 million in 2022.

Capital transfers increased by €17.7 million (29.8 per cent), amounting to €77.0 million compared to €59.3 million in 2022.

Service revenue also increased significantly by €148.6 million (32.1 per cent), reaching €611.6 million compared to €463.0 million in 2022.

However, interest received and dividends decreased by €19.8 million (22.1 per cent), amounting to €69.6 million compared to €89.4 million in 2022.

In terms of expenditures, total government spending increased by €616.9 million (9.3 per cent), reaching €7.26 billion compared to €6.64 billion during the same period in 2022.

Specifically, social benefits increased by €236.3 million (8.8 per cent), reaching €2.91 billion compared to €2.67 billion in 2022.

Employee compensation (including social security contributions and public employee pensions) increased by €230.3 million (11.9 per cent), totalling €2.17 billion compared to €1.94 billion in 2022.

Grants increased by €66.7 million, reaching €118.3 million compared to €51.6 million in 2022.

Current transfers increased by €70.1 million (19.2 per cent), amounting to €435.5 million compared to €365.4 million in 2022.

The capital account increased by €82.2 million (19.8 per cent), reaching €497.3 million compared to €415.1 million in 2022.

Specifically, gross fixed capital formation increased by €51.7 million (13.7 per cent), reaching €430.5 million compared to €378.8 million in 2022, while other capital transfers increased by €30.5 million (84.0 per cent), totalling €66.8 million compared to €36.3 million in 2022.

On the other hand, intermediate consumption decreased by €41.4 million (4.5 per cent), totalling €870.5 million compared to €911.9 million in 2022.

Finally, interest paid decreased by €27.3 million (9.6 per cent), amounting to €257.1 million compared to €284.4 million in 2022.