Cyprus government rakes in over €424M in surpluses this year

Cyprus has reported a substantial budget surplus of €424.5 million for the first half of 2024, a huge increase from the €62 million surplus during the same period last year. This improvement is mainly due to a significant rise in government revenue, according to the Statistical Service of Cyprus (CYSTAT).

In the first half of 2024, the government’s total revenue increased by €800.1 million, reaching €6.3 billion compared to €5.5 billion in the same period of 2023. The revenue boost came from several sources:

- Taxes on Production and Imports: Increased by €127.8 million to €2.15 billion.
- Income and Wealth Taxes: Rose by €224.9 million to €1.42 billion.
- Social Contributions: Went up by €286 million to €2.02 billion.
- Property Income: Jumped by €18.7 million to €70.2 million.
- Current Transfers: Grew by €27.6 million to €173.2 million.
- Sale of Goods and Services: Surged by €137 million to €455.4 million.

On the flip side, capital transfers, or large donations, decreased by €21.9 million, down to €26.3 million.

Meanwhile, the government’s total spending also increased, rising by €437.5 million to €5.89 billion in the first half of 2024 from €5.45 billion in the same period last year. Some key areas of increased spending include:

- Day-to-Day Operations: Up by €47.9 million to €576.7 million.
- Employee Wages and Benefits: Increased by €203.8 million to €1.83 billion.
- Social Benefits: Rose by €170.2 million to €2.38 billion.
- Current Transfers: Grew by €80.7 million to €464.6 million.
- Interest Payments on Debt: Increased by €30.3 million to €226.4 million.

However, spending on big projects and investments dropped by €66.2 million to €347.2 million, and subsidies were cut by €29.2 million to €64.8 million.

Overall, Cyprus’ financial situation has improved significantly due to increased income from various taxes and contributions, despite higher spending in many areas.

[Information from CNA]