The state’s balance sheet for 2023 showed a considerable dip in inflows in tandem with a sharp rise in outflows, with the government paying out around €750 million alone to service public debt, according to data published on Monday.

Compiled by the state treasury, the data show net inflows from operating and investment activities at €186 million – down 42 per cent compared to the previous year, 2022.

After servicing the public debt – to the tune of €751 million – the year closed out with net outflows of €565 million.

Factoring in net outflows from withdrawals and loan repayments (€534 million), total outflows in 2023 came to €1.09 billion – 25 per cent higher than in 2022.

Total revenue from operating and investment activities went up by 8 per cent, reaching €8.396 billion.

Indirect taxes accounted for 48 per cent of revenues, direct taxes for 39 per cent, and other revenues made up 13 per cent.

Revenue from indirect taxes logged an 8 per cent increase, or €242 million, compared to 2022. The main source of these revenues was income tax on corporations and individuals.

As far as revenue from indirect taxation, this rose by 12 per cent – chiefly from VAT receipts.

Other revenues came from the provision of services and the sale of goods (€440 million), EU grants (€177 million), concession fees for the management of the airports and harbours (€132 million), and dividend payouts from the Cyprus Telecommunications Authority (€23 million).

On the other side of the ledger, expenditures, the largest item were transfers – totaling €3.696 billion. This marked an 11 per cent rise on the previous year, primarily driven by an increase in social transfers – such as for the general healthcare system (Gesy) that got €762 million from the state.

Social transfers overall came to €1.862 billion. Expenditures on Guaranteed Minimum Income, child allowance, and allowances to people on small pensions, did not register an increase on the previous year.

Meanwhile, the government payroll jumped 11 per cent, totalling at €2.447 billion. The lion’s share went to the education ministry (36 per cent), the health ministry (13 per cent) and the justice ministry (13 per cent).

Pensions and bonuses to public-sector employees came to €526 million, rising 9 per cent on the previous year.