Cyprus Government Reports €600 Million Surplus in First Quarter

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Cyprus Government Reports €600 Million Surplus in First Quarter

Cyprus’ general government has posted a surplus of approximately €600 million in the initial quarter of 2024, marking a 58 percent increase from the previous year. This fiscal achievement, driven by robust revenue growth that outpaced expenditure, has been detailed in a report by the state’s statistical service.

According to the report, preliminary fiscal data for January to March 2024 reveals a surplus of €598.3 million, a significant rise compared to €376.4 million in the same period of 2023.

Increased Revenue

Total revenue for the first quarter of 2024 surged by €389.9 million, a 13.5 percent increase, reaching €3.28 billion, up from €2.89 billion in Q1 2023.

Taxes on production and imports climbed by €65.8 million, a 6.4 percent rise, totaling €1.09 billion compared to €1.02 billion in the previous year.
Net VAT revenue after deductions saw a €69.8 million increase, up by 10.2 percent to €752.5 million from €682.7 million in Q1 2023.
Social contributions soared by €108.3 million, marking a 12.5 percent increase to €977.9 million compared to €869.6 million in the corresponding period of 2023.
Income and wealth taxes rose by €135.7 million, a 17.4 percent increase, totaling €915.2 million, up from €779.5 million in Q1 last year.
Revenue from goods and services provision surged by €69.6 million, a 46.8 percent increase, reaching €218.3 million compared to €148.7 million in Q1 2023.
Capital transfers increased by €6.9 million to €11.0 million, compared to €4.1 million in the same period last year.
Property income receivable edged up by €0.2 million, a 0.8 percent increase, totaling €24.4 million compared to €24.2 million in Q1 2023.
Current transfers saw a €3.4 million increase, rising by 8.2 percent to €45.0 million from €41.6 million in the previous year.

Rising Expenditures

Total expenditures for January to March 2024 increased by €168.0 million, a rise of 6.7 percent, amounting to €2.68 billion, up from €2.51 billion in Q1 2023.

Social benefits rose by €70.6 million, up 7 percent to €1.08 billion compared to €1.01 billion in Q1 2023.
Compensation of employees, including imputed social contributions and pensions, increased by €113.9 million, a rise of 14.4 percent, totaling €903.7 million, up from €789.8 million in the same quarter last year.
Subsidies rose by €1.4 million, an increase of 4.3 percent, reaching €33.9 million compared to €32.5 million in Q1 2023.
Other current expenditures increased by €29.5 million, up 16.4 percent to €209.0 million from €179.5 million in the corresponding period of 2023.
Intermediate consumption rose by €20.9 million, an 8.4 percent increase, reaching €270.3 million compared to €249.4 million in Q1 2023.

Conversely, the capital account decreased by €61.2 million, a 34.0 percent drop, totaling €118.6 million in the current period, with €91.9 million in capital investments and €26.7 million in capital transfers. This contrasts with €179.8 million in Q1 2023, which included €151 million in capital investments and €28.8 million in capital transfers.

Finally, property income payable decreased by €7.1 million, a drop of 9.9 percent, amounting to €65 million compared to €72.2 million in the same quarter last year.

Cyprus Government Reports €600 Million Surplus in First Quarter

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