Cyprus recorded a budget surplus of €619.1 million in the first quarter of 2025, according to preliminary fiscal data released on Monday by the Cyprus Statistical Service (Cystat).

This marks an increase from the surplus of €575.70m reported during the same period in 2024.

Total revenue rose by €231.20m or 6.8 per cent, reaching €3.64 billion in the January to March 2025 period, compared with €3.41 billion in the corresponding period of 2024.

Social contributions recorded the most significant increase in revenue, growing by €139.30m or 13.2 per cent to reach €1.19bn, compared with €1.05bn in the first quarter of 2024.

Revenue from income and wealth taxation grew by €70.70m or 7.7 per cent, totalling €985.90m, up from €915.20m in the same period last year.

Receipts from the provision of goods and services also saw a notable rise of €57.30m or 26.4 per cent, reaching €274.60m, up from €217.30m in the first quarter of 2024.

Taxes on production and imports increased by €28m or 2.6 per cent, amounting to €1.10bn, compared with €1.07bn in the same quarter of 2024.

Within this category, net VAT revenue (after refunds) increased by €4.80m or 0.7 per cent, reaching €733.20m, compared with €728.40m in the first quarter of the previous year.

By contrast, current transfers declined by €52.30m or 44.2 per cent, falling to €66m, down from €118.30m in the first quarter of 2024.

What is more, property income receivable dropped by €2.40m or 11.5 per cent, amounting to €18.70m, compared with €21.10m in the same period last year.

Capital transfers also declined by €9.40m or 79.7 per cent, reaching just €2.40m, down from €11.80m in the first quarter of 2024.

On the expenditure side, Cystat reported that total government spending increased by €187.70m or 6.6 per cent, rising to €3.02bn, compared with €2.83bn in the first quarter of 2024.

Social benefits grew by €103m or 8.7 per cent, amounting to €1.28bn, compared with €1.18bn during the same period of the previous year.

Compensation of employees, including imputed social contributions and pensions for civil servants, increased by €58m or 6.5 per cent, reaching €955.50m, compared with €897.50m in the first quarter of 2024.

Subsidies saw a small rise of €1.10m or 3.1 per cent, totalling €36.20m, up from €35.10m during the same period last year.

Payable property income rose slightly by €0.40m or 0.6 per cent, amounting to €72.10m, compared with €71.70m in the first quarter of 2024.

Meanwhile, the capital account increased by €53m or 33.3 per cent, reaching €212m.

This included €176.80m in capital investments and €35.20m in capital transfers, compared with a total of €159m (€131.40m in investments and €27.60m in transfers) in the corresponding period of 2024.

On the other hand, intermediate consumption declined by €24m or 8.1 per cent, totalling €271.10m, down from €295.10m in the first quarter of the previous year.

Other current expenditures also decreased by €3.80m or 1.9 per cent, reaching €192.80m, compared with €196.60m in the same period of 2024.