Government achieves €155.5M surplus in 2023

Cyprus government's surplus for the first half of 2023 increased to €155.5 million, equivalent to 0.5% of GDP, compared to a deficit of €92.4 million (-0.3% of GDP) for the period of January-June 2022, based on preliminary fiscal results from the Statistical Service of Cyprus.

Revenue up 14.2%

Total revenue for the period January-June 2023 increased by €680.4 million (14.2%) to reach €5,468.6 billion compared to €4,788.2 billion in the same period of 2022.

Specifically, total taxes on production and imports increased by €241.9 million (13.8%) to reach €1,997.7 billion compared to €1,755.8 billion in 2022. Among these, net VAT revenue (after deducting refunds) increased by €164.5 million (14.2%) to reach €1,322.9 billion compared to €1,158.4 billion in 2022.

Income and wealth taxes increased by €216.9 million (21.2%) to reach €1,240.3 billion compared to €1,023.4 billion in 2022. Social contributions increased by €230.0 million (15.5%) to reach €1,709.6 billion compared to €1,479.6 billion in 2022. Interest and dividends received increased by €1.3 million (2.5%) to reach €53.3 million compared to €52.0 million in 2022. Current transfers increased by €42.7 million (43.7%) to reach €140.5 million compared to €97.8 million in 2022.

On the contrary, capital transfers decreased by €30.4 million (59.0%) and were limited to €21.1 million compared to €51.5 million in 2022. Revenue from the provision of services decreased by €22.0 million (6.7%) and was limited to €306.1 million compared to €328.1 million in 2022.

Expenditure up 8.9%

Total expenditures for the period January-June 2023 increased by €432.5 million (8.9%) to reach €5,313.1 billion compared to €4,880.6 billion in the corresponding period of 2022.

Specifically, social benefits increased by €212.6 million (10.4%) to reach €2,250.9 billion compared to €2,038.3 billion in 2022. Personnel expenses (including social security and pensions for public servants) increased by €161.6 million (11.1%) to reach €1,621.5 billion compared to €1,459.9 billion in 2022. Intermediate consumption increased by €8.7 million (1.7%) to reach €519.5 million compared to €510.8 million in 2022. Subsidies increased by €10.8 million (28.3%) to reach €49.0 million compared to €38.2 million in 2022. Interest paid increased by €25.5 million (12.5%) to reach €229.8 million compared to €204.3 million in 2022.

Capital account increased by €43.0 million (14.9%) to reach €330.9 million compared to €287.9 million in 2022. Specifically, capital investments increased by €86.4 million (42.9%) to reach €287.9 million compared to €201.5 million in 2022, while other capital transfers decreased by €43.4 million (50.2%) and were limited to €43.0 million compared to €86.4 million in 2022.

On the contrary, current transfers decreased by €29.7 million (8.7%) and were limited to €311.5 million compared to €341.2 million in 2022.