Fiscal surplus exceeds €500m in first two months of 2024

Cyprus' General Government surplus exceeded half a billion in the first two months of 2024 marking an increase of 34% compared with the respective period of last year.

According to preliminary data released by the Statistical Service of Cyprus (CyStat), the general government fiscal results indicate a surplus of €534.8m, representing 1.7% of GDP, for the period of January-February 2024, compared to a surplus of €398.0m (1.3% of GDP) that was recorded during the period of January- February 2023.

Revenue up by 16.7%

During the period of January-February 2024, total revenue increased by €333.9m or by an annual 16.7%, amounting to €2,328m, compared to €1,994.1m in the corresponding period of 2023.

Taxes on production and imports increased by €54.1m (+8.0%) and amounted to €727.2m, compared to €673.1m in 2023, of which net VAT revenue increased by €51.7m (+11.0% and amounted to €523.2m, compared to €471.5m in 2023.

Revenue from taxes on income and wealth increased by €120.8m (+20.1%) reaching €721.7m, compared to €600.9m in 2023. Social contributions increased by €98.6m (+17.1%) and amounted to €673.9m, compared to €575.3m in 2023.

Property income increased by €1.2m (+7.7%), amounting to €16.8m, compared to €15.6m in 2023, whereas current transfers increased by €4m (+14.3%) and amounted to €31.9m, compared to €27.9m in 2023.

Revenue from the sale of goods and services increased by €53m (+54.4%) and amounted to €150.4m, compared to €97.4m in 2023.

Capital transfers increased by €2.2m (+56.4%) and amounted to €6.1m, compared to €3.9m in 2023.

Expenditure up by 12.3%

According to CyStat, during the period of January-February 2024, total expenditure increased by €197.1m (+12.3%), reaching €1,793.2m, compared to €1,596.1m in the corresponding period of 2023.

Intermediate consumption increased by €16.7m (+10.6%) and amounted to €174.1m, compared to €157.4m in 2023.

Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €82m (+15.8%) and amounted to €601.2m, compared to €519.2m in 2023.

Social benefits rose by €83.5m (+12.9%) and amounted to €730.8m, compared to €647.3m in 2023.

Current transfers increased by €3.9m (+3.2%) and amounted to €125m, compared to €121.1m in 2023.

The capital account increased by €39.8m (+73.4%) and amounted to €94m, compared to €54.2m in 2023, of which gross capital formation increased by €21.8m (+43.4%) and amounted to €72m, compared to €50.2m in 2023 and other capital expenditure increased by €18m and amounted to €22m, compared to €4m in 2023, CyStat added.

On the contrary, interest payable decreased by €13.9m (-18.9%) to €59.9m, from €73.8m in 2023, while subsidies decreased by €14.9m (-64.5%) to €8.2m, from €23.1m in 2023.