Cyprus budget surplus stable at 4 per cent of GDP in 2025

Cyprus recorded a general government fiscal surplus of €1.39 billion, equal to 4 per cent of GDP, for the period from January to August 2025, according to preliminary figures released on Friday by the state statistical service (Cystat).

The surplus marks a slight increase from €1.33 bn, again equivalent to 4 per cent of GDP, recorded during the same period in 2024.

Total government revenue rose by €641.10 million, or 6.80 per cent, reaching €10.10 bn compared with €9.46 bn a year earlier.

Revenue from taxes on income and wealth climbed by €178.30m, or 7.10 per cent, amounting to €2.70 bn compared with €2.52 bn in 2024.

Social contributions also recorded a notable rise of €243.80m, or 8.40 per cent, totalling €3.14 bn versus €2.89 bn last year.

Property income almost doubled, increasing by €57.40m to €121.80m compared with €64.40m in 2024.

Taxes on production and imports edged up by €41m, or 1.30 per cent, to €3.15 bn, while net VAT revenue increased by €47.70m, or 2.30 per cent, to €2.12 bn.

Revenue from the sale of goods and services grew by €97.80m, or 17.70 per cent, reaching €651.60m compared with €553.80m a year earlier.

Capital transfers received recorded a sharp rise of €45.80m, or 65.70 per cent, reaching €115.50m, while current transfers declined by €22.90m, or 9 per cent, to €232.70m.

On the expenditure side, total spending increased by €574.30m, or 7.10 per cent, to €8.71 bn, up from €8.13 bn in the same period of 2024.

Compensation of employees, including imputed social contributions and civil service pensions, rose by €149.30m, or 6.20 per cent, to €2.54 bn.

Social benefits were also higher by €231.10m, or 6.80 per cent, totalling €3.62 bn.

Intermediate consumption, representing government operational expenses, grew by €84.60m, or 10.10 per cent, reaching €920.10m.

What is more, Cyprus’ capital account rose by €131.80 million, or 22.90 per cent, reaching €707 million.

This reflects an increase in gross capital formation, which expanded by €92.90 million, or 19.20 per cent, to €576.70 million, as well as in other capital expenditure, which jumped by €38.90 million, or 42.60 per cent, to €130.30 million.

Meanwhile, interest payments fell slightly by €2.90m, or 1 per cent, to €287.70m.

Current transfers decreased by €16.60m, or 3.10 per cent, to €527m, while subsidies were marginally lower by €3m, or 3 per cent, amounting to €98m.

Cystat explained that for several general government entities, particularly within the local government subsector, the figures are based on estimates due to incomplete data submissions by competent authorities.

In terms of subsectors, the central government surplus reached €622m, up from €432.30m in 2024.

The local government registered a deficit of €32.70m, compared with a surplus of €14.60m a year earlier.

Finally, the statistical service reported that the social security funds surplus decreased to €806.40m, from €881.90m in 2024.