Cyprus government reports €876.3 million surplus for 2023

Cyprus’ general government recorded a surplus of €876.3 million during the entirety of 2023, according to the preliminary financial results released on Thursday by the Cyprus Statistical Service (Cystat).

In terms of a percentage of GDP, this amount represents a 2.9 per cent increase when compared to the €676.3m surplus, reported for the same period in 2022, which represented 2.4 per cent of GDP.

During the January-December 2023 period, total revenues increased by €1.3 billion, reflecting a rise of 11.4 per cent, reaching €12.76bn, compared to €11.45bn in 2022.

Specifically, total taxes on production and imports increased by €353.6m (+8.8 per cent) to €4.38bn compared to €4.03bn in 2022. Net VAT income (after deducting returns) rose by €228.2m (+8.4 per cent) to €2.93bn from €2.7bn in 2022.

Revenue from income and wealth taxes increased by €333.2m (+11.4 per cent) to €3.257bn compared to €2.92bn in 2022. Social contributions increased by €451.7m (+14.5 per cent) to €3.57bn, up from €3.12bn in 2022.

Current transfers increased by €42.9m (+16.8 per cent) to €297.7m from €254.8m in 2022. Revenue from the provision of services increased by €11.1m (+1.4 per cent) to €817.1m from €806m in 2022.

Interest and dividend income increased by €17.7m (+15.5 per cent) to €131.8m from €114.1m in 2022. Capital transfers increased by €96.6m (+47.9 per cent) to €298.3m from €201.7m in 2022.

Total expenditures during the January-December 2023 period increased by €1.1bn (+10.3 per cent), totalling €11.88bn compared to €10.78bn in 2022.

Social benefits increased by €320.9m (+7.6 per cent) to €4.53bn from €4.21bn in 2022. Personnel expenses (including social contributions and pensions of public employees) increased by €404.4m (+12.7 per cent) to €3.58bn from €3.179bn in 2022.

Subsidies increased by €24.2m (+17.4 per cent) to €163.6m from €139.4m in 2022.

Current transfers increased by €95.7m (+14.7 per cent) to €744.8m from €649.1m in 2022.

Interest payments increased by €29.3m (+7.2 per cent) to €439.0m from €409.7m in 2022.

Capital account increased by €265.9m (+28.0 per cent) to €1.21bn from €950.5m in 2022.

Specifically, investments in fixed capital increased by €294.9m (+41.3 per cent) to €1bn from €713.3m in 2022, while other capital transfers decreased by €29.0m (-12.2 per cent) to €208.2m from €237.2m in 2022.

Finally, intermediate consumption decreased by €33.6m (-2.7 per cent) to €1.20bn, down from €1.24bn in 2022.