Cyprus recorded a general government fiscal surplus of €538.8 million in January 2026, equivalent to 1.5 per cent of gross domestic product, according to the Cyprus Statistical Service (Cystat).

The figure represents a slight decline compared with the surplus of €569.3 million, or 1.6 per cent of GDP, recorded in January 2025.

According to the statistical service, total government revenue in January 2026 increased by €14.7 million, representing a rise of 1.0 per cent, reaching €1.55 billion compared with €1.53 billion in the same period of 2025.

The increase was largely supported by strong growth in taxes on income and wealth, which rose by €71.2 million or 12.2 per cent, reaching €657.0 million compared with €585.8 million in January 2025.

In addition, capital transfers increased by €2.3 million, representing a rise of 79.3 per cent, reaching €5.2 million compared with €2.9 million in the corresponding period last year.

At the same time, taxes on production and imports declined by €24.0 million or 6.2 per cent, falling to €363.4 million from €387.4 million recorded in January 2025.

Despite this decline, net revenue from value added tax increased by €9.2 million, representing growth of 3.7 per cent, reaching €258.9 million compared with €249.7 million a year earlier.

Cystat also reported that social contributions fell by €7.8 million or 1.8 per cent, decreasing to €423.4 million compared with €431.2 million in January 2025.

In addition, property income declined by €2.2 million or 31.0 per cent, falling to €4.9 million from €7.1 million recorded during the same month in 2025.

The data further showed that current transfers decreased by €8.9 million or 42.4 per cent, reaching €12.1 million compared with €21.0 million in January 2025.

At the same time, revenue from the sale of goods and services declined by €15.9 million or 15.7 per cent, falling to €85.5 million from €101.4 million in the corresponding period last year.

On the expenditure side, total government spending increased by €45.2 million or 4.7 per cent, reaching €1.01 billion in January 2026 compared with €967.5 million in January 2025.

The increase in spending was partly driven by higher intermediate consumption, which rose by €10.2 million or 13.9 per cent, reaching €83.5 million compared with €73.3 million a year earlier.

In addition, social benefits increased by €19.3 million or 4.5 per cent, reaching €450.0 million compared with €430.7 million in January 2025.

The data also showed that current transfers rose significantly by €21.7 million or 30.2 per cent, reaching €93.6 million compared with €71.9 million during the same month last year.

Meanwhile, the capital account increased by €4.2 million or 12.7 per cent, reaching €37.4 million compared with €33.2 million in January 2025.

Within the capital account, gross capital formation increased by €0.6 million or 2.3 per cent, reaching €27.0 million compared with €26.4 million a year earlier.

At the same time, other capital expenditure rose by €3.6 million or 52.9 per cent, reaching €10.4 million compared with €6.8 million in the same period of 2025.

However, several expenditure categories recorded declines during the period.

The data showed that compensation of employees, including imputed social contributions and pensions of civil servants, fell by €1.4 million or 0.4 per cent, reaching €313.8 million compared with €315.2 million in January 2025.

Similarly, interest payable declined by €0.2 million or 0.6 per cent, reaching €34.3 million compared with €34.5 million recorded a year earlier.

Subsidies also declined significantly, falling by €8.6 million to just €0.1 million compared with €8.7 million in January 2025.

Finally, Cystat explained that some fiscal data for general government entities were based on estimates, due to the non-submission of sufficient data by the relevant authorities.