Cyprus achieves €600 million fiscal surplus in Q1 2024

Cyprus generated a fiscal surplus close to €600 million in the first quarter of 2024, marking an increase of 58% year on year, driven by the rise in state revenue which exceeded the rise in spending.

According to the quarterly accounts of the General Government for the first quarter published on Friday by Cyprus Statistical Service (CyStat), preliminary fiscal results showed a surplus of €598.3 mn for the period of January-March 2024, compared to a surplus of €376.4 mn in the respective period of last year.

Revenue

During the period of January-March 2024, total revenue increased 13.5% or by €389.9 mn and amounted to €3,282.5 mn, compared to €2,89.6 mn in the corresponding period 2023.

Among other revenue, taxes on production and imports increased by €65,8 mn or 6.4%. and amounted to €1,090.7 mn, compared to €1,024.9 mn in the first quarter of 2023, of which net VAT revenue increased by €69.8 mn (+10,2%) and amounted to €752.5 mn, compared to €682.7 mn in the corresponding quarter of 2023.

Social contributions increased by €108.3 mn (+12.5%) and amounted to €977.9 mn, compared to €869.6 mn in the first quarter of 2023.

Revenue from taxes on income and wealth increased by €135.7 mn (+17.4%) and amounted to €915.2 mn, compared to €779,5 mn in the corresponding quarter of 2023.

Expenditure

During the period of January-March 2024, total expenditure increased by €168 mn (+6.7%) and amounted to €2,684.2 mn, from €2,516.3 mn in the corresponding period of 2023.

Social transfers increased by €70.6 mn (+7.0%) and amounted to €1,083.7 mn, from €1,013.1 mn in the first quarter of 2023.

Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €113.9 mn (+14.4%) and amounted to €903.7mn, compared to €789.8 mn in the corresponding quarter of 2023.

Subsidies increased by €1.4 mn (+4.3%) and amounted to €33.9 mn, compared to €32.5 mn in the first quarter of 2023.

Other current expenditure increased by €29.5 mn (+16.4%) and amounted to €209 mn, compared to €179.5 mn in the corresponding quarter of 2023.

On the contrary, the capital account decreased by €61.2 mn (-34%) to €118.6 mn (€91.9 mn capital formation and €26.7 mn capital transfers), from €179.8 mn (€151 mn capital formation and €28.8 mn capital transfers) in the corresponding quarter of 2023.

Property income payable decreased by €7.1 mn (-9.9%) to €65 mn, from €72.2 mn in the first quarter of 2023, CyStat said.