Cyprus recorded a budget surplus of €1.17 billion, equal to 3.2 per cent of GDP, in the first nine months of 2025, according to preliminary figures released on Friday by the Cyprus Statistical Service (Cystat).

This represents a decline from the €1.34 bn surplus, or 3.9 per cent of GDP, recorded in the same period of 2024, as expenditure outpaced revenue growth.

During January to September 2025, total government revenue increased by €650.10 million, or 6.2 per cent, reaching €11.20 bn, compared with €10.55 bn a year earlier.

Revenue from taxes on income and wealth rose by €182.20m, up 6.7 per cent, to €2.89 bn, while social contributions climbed 7.3 per cent to €3.47 bn.

Property income recorded one of the sharpest increases, rising 77.6 per cent to €128.60m, while taxes on production and imports grew slightly by 0.7 per cent to €3.54 bn.

Within that category, net VAT revenue totalled €2.38 bn, showing a modest 0.5 per cent increase compared with €2.36 bn in 2024.

Revenue from the sale of goods and services rose significantly, up 17.9 per cent to €765.00m, while capital transfers surged 65.0 per cent to €116.30m.

Conversely, current transfers fell 3.7 per cent to €285.50m, down from €296.60m last year.

On the expenditure side, total spending rose by €824.90m, or 9.0 per cent, reaching €10.03 bn, compared with €9.20 bn in the same period of 2024.

Compensation of employees, including social contributions and civil service pensions, increased 6.5 per cent to €2.87 bn, while social benefits climbed 7.2 per cent to €4.08 bn.

Intermediate consumption, which covers the cost of goods and services used by the public sector, rose 7.6 per cent to €1.05 bn.

A major contributor to the rise in expenditure was the capital account, which expanded 55.9 per cent to €1.04 bn, up from €664.70m in 2024.

Within that, gross capital formation increased 29.0 per cent to €731.30m, while other capital expenditure grew sharply to €304.70m, from €97.60m last year.

Meanwhile, interest payments decreased 1.1 per cent to €326.30m, current transfers fell 8.2 per cent to €558.80m, and subsidies dropped 13.7 per cent to €108.10m.

Finally, Cystat pointed out that for certain entities, particularly within the local government subsector, some figures were based on estimates due to insufficient data submissions by the relevant authorities.