Cyprus government records €702.5 million surplus, doubles year-on-year

The Cyprus general government recorded a surplus of €702.50 million, equivalent to 2.2 per cent of GDP, during the first seven months of 2024.

According to a report released on Friday by the Statistical Service of Cyprus (Cystat), this marks a significant improvement from the €345.90 million surplus (1.2 per cent of GDP) reported during the same period in 2023.

Total revenue for the first seven months of 2024 increased by €953.10 million, a rise of 14.2 per cent, reaching €7.66 billion, up from €6.71 billion in the corresponding period last year.

The service explained that this growth was driven by increases across several revenue streams.

Taxes on production and imports rose by €175.70 million (7.3 per cent) to €2.58 billion, with net VAT revenue contributing €1.72 billion, a 9.5 per cent increase from 2023.

Revenue from taxes on income and wealth also saw a significant rise of €238.50 million (14.6 per cent), amounting to €1.87 billion.

Social contributions surged by €327.90 million (16.2 per cent) to €2.35 billion, reflecting strong economic activity.

Other notable increases included property income, which rose by €21.00 million (34.5 per cent) to €81.90 million, and revenue from the sale of goods and services, which jumped by €163.30 million (43.5 per cent) to €538.70 million.

However, capital transfers experienced a decline, falling by €16.90 million (37.2 per cent) to €28.50 million.

On the expenditure side, total spending increased by €596.60 million (9.4 per cent) to €6.96 billion, up from €6.36 billion in the same period of 2023.

The increase was largely driven by a €232.80 million (12.2 per cent) rise in the compensation of employees, which totalled €2.14 billion, and a €208.10 million (8.1 per cent) increase in social benefits, reaching €2.77 billion.

Other significant expenditure increases included intermediate consumption, which grew by €109.50 million (17.8 per cent) to €723.10 million, and current transfers, which rose by €99.10 million (22.9 per cent) to €531.80 million.

Interest payable also saw an uptick, increasing by €27.90 million (11.1 per cent) to €279.60 million.

The capital account, however, decreased by €61.80 million (12.4 per cent) to €434.90 million, with gross capital formation falling by €74.00 million (17.4 per cent) to €352.30 million.

Despite this, other capital expenditure increased by €12.20 million (17.3 per cent) to €82.60 million.

Finally, the statistical service reported that subsidies were reduced by €19.10 million (19.2 per cent) to €80.60 million.