The fiscal surplus exceeded half a billion

The fiscal surplus of the General Government significantly exceeded half a billion in the first two months of this year, demonstrating an increase of 34 per cent annually and reaching 1.7 per cent of GDP.

According to preliminary data published on Monday by the Cyprus Statistical Service (Cystat), the surplus amounted to €534.8 million, equivalent to 1.7 per cent of GDP. This is in comparison to a surplus of €398.0 million, or 1.3 per cent of GDP, for the period January-February 2023.

Moreover, total revenues during January-February 2024 rose by 16.7 per cent or by €333.9m, totalling €2,328m compared to €1,994.1m in the corresponding period of 2023.

Specifically, total taxes on production and imports increased by €54.1m (8.0 per cent) to €727.2m, up from €673.1m in 2023.

Notably, net VAT revenue (after deducting refunds) surged by €51.7m (11.0 per cent) to €523.2m, compared to €471.5m in 2023.

In addition, income and wealth tax revenues saw an uplift of €120.8m (20.1 per cent) reaching €721.7m, as opposed to €600.9m in 2023.

Social contributions also experienced growth, up by €98.6m (17.1 per cent) to €673.9m compared to €575.3m in 2023.

Meanwhile, interest and dividends received increased modestly by €1.2m (7.7 per cent) to €16.8m, against €15.6m in 2023.

Current transfers rose by €4.0m (14.3 per cent) to €31.9m compared to €27.9m in 2023. Similarly, service revenue increased significantly by €53.0m (54.4 per cent) to €150.4m, up from €97.4m in 2023.

Furthermore, capital transfers witnessed a substantial increase of €2.2m (56.4 per cent), totalling €6.1m compared to €3.9m in 2023.

On the expenditure side, total expenses during January-February 2024 grew by €197.1m or 12.3 per cent, reaching €1,793.2m compared to €1,596.1m in the corresponding period of 2023.

Specifically, interim consumption climbed by €16.7m (10.6 per cent) to €174.1m, up from €157.4m in 2023. Staff benefits, including imputed social contributions and pensions of civil servants, increased by €82.0m (15.8 per cent) to €601.2m, from €519.2m in 2023.

Social benefits also rose by €83.5m (12.9 per cent) to €730.8m, compared to €647.3m in 2023.

Current transfers marginally increased by €3.9m (3.2 per cent) to €125.0m, up from €121.1m in 2023.

In contrast, the capital account saw a significant jump of €39.8m (73.4 per cent) reaching €94.0m, compared to €54.2m in 2023.

Within this, fixed capital investments rose by €21.8m (43.4 per cent) to €72.0m, against €50.2m in 2023, and other capital transfers increased by €18.0m to €22.0m, from €4.0m in 2023.

Conversely, interest payments witnessed a decrease of €13.9m (18.9 per cent), being limited to €59.9m compared to €73.8m in 2023.

Subsidies saw a significant reduction of €14.9m (64.5 per cent), falling to €8.2m compared to €23.1m in 2023.