Fiscal surplus reaches €591 million in first five months of 2024

The General Government surplus increased to 1.9% of GDP during the period from January to May 2024, compared to 1.1% of GDP in the corresponding period of 2023.

According to preliminary fiscal results announced by CySTAT, the surplus for January-May 2024 amounted to €590.6 million, showing a significant rise compared to the surplus of €322.7 million (1.1% of GDP) recorded in the same period of the previous year.

According to the data, despite the increase in expenditures during this period, fiscal stability was maintained due to the significant increase in revenue, primarily from taxes and social contributions.

Revenue growth of 14.9%

Total revenue for January-May 2024 increased by €700.8 million, or 14.9%, reaching €5,394.5 million compared to €4,693.7 million during the same period in 2023. Taxes on production and imports saw an 8.4% increase, totaling €1,899.1 million. Within this category, VAT revenue rose by 8.9%, amounting to €1,297.1 million.

Taxes on income and wealth experienced a substantial increase of 17.2%, reaching €1,235.9 million. Social contributions also makred a significant rise of 16.6%, totaling €1,685.2 million. Revenue from the sale of goods and services increased by 35.4%, amounting to €366.8 million. Current transfers and capital transfers saw increases of 19.9% and 50.3%, reaching €134.9 million and €23.6 million, respectively.

Expenditure increases by 9.9%

Total expenditure during January-May 2024 increased by €432.8 million, or 9.9%, amounting to €4,803.9 million compared to €4,371.1 million during the same period in 2023. Compensation of employees, including imputed social contributions and pensions of civil servants, increased by 13.8%, totaling €1,523.5 million. Social benefits rose by 9.3%, reaching €1,913.6 million. Current transfers increased by 18.1%, amounting to €365.2 million, while interest payable surged by 29.1%, reaching €192.4 million.

Despite the overall increase in expenditure, the capital account saw a decrease of 13.2%, amounting to €276.4 million from €318.6 million in 2023. Within this, gross capital formation fell by 16.3%, reaching €233.1 million, while other capital expenditures increased by 7.7%, totaling €43.3 million. Additionally, subsidies decreased by 19.9%, amounting to €57.3 million from €71.5 million in the previous year.

(Source: CNA)