Cyprus posts €1.37 billion government surplus for Jan-Aug 2024

The General Government surplus increased by €469.9 million during the period January–August 2024, compared to the same period in 2023.

Preliminary fiscal results prepared by CySTAT for the January–August 2024 period show a General Government surplus of €1.37 billion (4.3% of GDP), compared to a surplus of €898.5 million (3.0% of GDP) for the same period in 2023.

Revenue growth of 13%

Total revenue for January–August 2024 increased by €1.07 billion (13.0%), reaching €9.30 billion, compared to €8.23 billion in the same period of 2023. Specifically, total taxes on production and imports rose by €275.4 million (9.8%), reaching €3.07 billion, compared to €2.80 billion in 2023. Net VAT revenue (after deductions) saw a notable increase of €247.2 million (13.6%), amounting to €2.07 billion, compared to €1.82 billion in 2023. Income and wealth taxes increased by €371.7 million (17.3%), reaching €2.52 billion, compared to €2.15 billion in the previous year.

Social contributions grew by €365.7 million (15.7%), amounting to €2.69 billion, compared to €2.33 billion in 2023. Interest and dividend income rose by €21.4 million (31.1%), reaching €90.3 million, compared to €68.9 million in 2023. Service revenue increased by €143.4 million (30.2%), reaching €618.4 million, compared to €475.0 million in 2023.

Conversely, current transfers decreased by €71.4 million (-23.5%), totaling €232.9 million, compared to €304.3 million in 2023. Capital transfers also dropped by €32.8 million (-31.2%), amounting to €72.2 million, compared to €105.0 million in the previous year.

Expenditure rises by 8.2%

Total expenditure for the January–August 2024 period increased by €603.5 million (8.2%), reaching €7.93 billion, compared to €7.33 billion in 2023. This increase was largely driven by personnel compensation, which rose by 12.0%, and social benefits, which grew by 8.4%.

Intermediate consumption increased by €49.9 million (6.5%), reaching €818.2 million, compared to €768.3 million in 2023. Personnel compensation, including imputed social contributions and pensions of public employees, rose by €262.4 million (12.0%), amounting to €2.45 billion, compared to €2.19 billion in 2023. Social benefits increased by €242.3 million (8.4%), reaching €3.13 billion, compared to €2.89 billion in the previous year. Current transfers rose by €117.3 million (23.6%), reaching €614.9 million, compared to €497.6 million in 2023. Interest payments increased by €37.0 million (14.2%), amounting to €298.6 million, compared to €261.6 million in 2023.

Capital account expenditure decreased by €74.3 million (-12.4%), reaching €526.0 million, compared to €600.3 million in 2023. Within this category, fixed capital investments fell by €69.4 million (-13.9%), reaching €429.3 million, compared to €498.7 million in 2023, and other capital transfers decreased by €4.9 million (-4.8%), amounting to €96.7 million, compared to €101.6 million in the previous year.

Additionally, subsidies dropped by €31.2 million (-26.5%), totaling €86.6 million, compared to €117.8 million in 2023.

(Source: CNA)