Cyprus government records €918.7 million surplus in 2023

The Cyprus government recorded a fiscal surplus of €918.7 million in 2023, constituting 3.1 per cent of the Gross Domestic Product (GDP), with government debt reaching €23.03 billion, accounting for 77.3 per cent of GDP, according to a report by the state’s statistical service released on Monday.

Total revenues for 2023 soared by €1.37 billion, marking an impressive 11.9 per cent surge to reach €12.91 billion, compared to €11.53 billion in 2022.

Specifically, production and import taxes witnessed an increase of €403.6 million (+10 per cent), totalling €4.43 billion, compared to €4.03 billion in 2022.

Net VAT revenue, after deducting refunds, rose by €273.1 million (+10.1 per cent) to reach €2.97 billion compared to €2.7 billion in 2022.

Social security contributions saw a substantial increase of €451.7 million (+14.5 per cent), reaching €3.57 billion, compared to €3.12 billion in 2022.

Income and wealth taxes rose by €340.7 million (+11.7 per cent), totalling €3.26 billion, compared to €2.92 billion in 2022.

Current transfers rose by €56.8 million (+22.3 per cent), reaching €311.2 million, compared to €254.4 million in 2022.

Total expenditures for 2023 increased by €1.21 billion (+11.3 per cent), reaching €11.99 billion, compared to €10.78 billion in 2022.

Personnel expenses, including social security contributions and public employee pensions, rose by €408 million (+12.8 per cent), increasing to €3.58 billion, compared to €3.17 billion in 2022.

Social benefits increased by €320.9 million (+7.6 per cent) to €4.53 billion, compared to €4.21 billion in 2022.

Other current expenditures increased by €174.9 million (+26.9 per cent) to €824.8 million compared to €649.9 million in 2022.

Capital income increased by €20.9 million (+5.1 per cent) to €431.5 million, compared to €410.6 million in 2022.

Subsidies increased by €24.3 million (+17.4 per cent), reaching €163.6 million, compared to €139.3 million in 2022.

Total capital expenditures rose by €307.9 million (+32.4 per cent), reaching €1.25 billion, comprising €1.03 billion in gross capital formation and €220.6 million in other capital transfers, compared to €950.5 million in 2022.

Conversely, intermediate consumption decreased by €43.6 million (-3.5 per cent), dropping to €1.19 billion compared to €1.24 billion in 2022.