Cyprus recorded a general government fiscal surplus of €552.9 million during the first five months of 2026, according to preliminary figures released by the Cyprus Statistical Service (Cystat) on Tuesday, with higher tax revenues and social contributions offsetting increased public expenditure.

The surplus for the January to May 2026 period was equivalent to 1.4 per cent of GDP, compared with a surplus of €544.5m, or 1.5 per cent of GDP, recorded during the corresponding period of 2025.

According to Cystat, total government revenue increased by €282.5m, or 4.8 per cent, reaching €6.2 billion from €5.92 billion a year earlier.

The increase was primarily driven by higher revenue from taxes on income and wealth, which rose by €115.2m, or 8.4 per cent, to €1.49bn, compared with €1.37bn during the corresponding period of 2025.

Social contributions increased by €102.2m, or 5.2 per cent, reaching €2.07bn, up from €1.96bn.

Revenue from taxes on production and imports rose by €93.1m, or 4.9 per cent, to €2.00bn, compared with €1.90bn a year earlier.

Within that category, net VAT revenue climbed by €138m, or 11.0 per cent, to €1.39bn, from €1.25bn.

Revenue from capital transfers increased by €26.4m to €38.8m, compared with €12.4m in the corresponding period of 2025.

Income from the sale of goods and services also rose by €9.4m, or 2.2 per cent, reaching €433.2m, up from €423.8m.

By contrast, property income fell by €24.2m, or 26.1 per cent, to €68.5m, from €92.7m.

Revenue from current transfers also declined, dropping by €39.6m, or 25.5 per cent, to €115.7m, compared with €155.3m a year earlier.

Meanwhile, total government expenditure increased by €274.1m, or 5.1 per cent, reaching €5.65bn, compared with €5.38bn during the first five months of 2025.

Intermediate consumption rose by €52m, or 9.7 per cent, to €590.3m, from €538.3m.

Compensation of employees, including imputed social contributions and civil servants’ pensions, increased by €47.6m, or 3.0 per cent, reaching €1.64bn, compared with €1.59bn.

Social benefits recorded the largest increase in absolute terms, rising by €108.2m, or 4.9 per cent, to €2.31bn, from €2.20bn.

Interest payments increased by €32.3m, or 15.7 per cent, to €238.4m, compared with €206.1m in the corresponding period of 2025.

Expenditure on current transfers also rose significantly, increasing by €70.5m, or 19.6 per cent, to €429.3m, from €358.8m.

By contrast, capital expenditure declined by €26.8m, or 6.0 per cent, to €418.7m, compared with €445.5m in the same period last year.

Within the capital account, gross capital formation fell by €25.4m, or 7.2 per cent, to €327.7m, from €353.1m.

Other capital expenditure also edged lower, decreasing by €1.5m, or 1.6 per cent, to €90.9m, from €92.4m.

In addition, subsidies decreased by €9.6m, or 23.2 per cent, to €31.8m, compared with €41.4m a year earlier.

Cystat said the figures are preliminary, adding that estimates were used for a number of general government entities, particularly within the local government subsector, because sufficient data had not been submitted by the relevant authorities.