Government surplus of €609.5 million for 2022

General Government preliminary fiscal results published by the Statistical Service of Cyprus on Tuesday indicate a surplus of €609.5 mn, equal to 2.3% of GDP, for the period of January-December 2022, compared to a deficit of €402.8 mn or 1.7% of GDP, that was recorded during the period of January-December 2021.

Total expenditure increased 4.1% by €424.2 mn in 2022 and amounted to €10,766.7 mn, compared to €10,342.6 mn in the corresponding period of 2021.

In detail, social benefits increased by 11.3% or €434.4 mn and amounted to €4,275.2 mn, compared to €3,840.8 mn in 2021. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by 4.7% or €142.4 mn and amounted to €3,147.5 mn, compared to €3,005.1 mn in 2021. Intermediate consumption increased by 16% or €167 mn and amounted to €1,211.2 mn, compared to €1,044.2 mn in 2021. Current transfers increased by 7.8% or €47 mn and amounted to €652.7 mn, compared to €605.7 mn in 2021.

The capital account increased 13.3% by €109.4 mn and amounted to €931.5 mn, compared to €822.1 mn in 2021. In detail, gross capital formation increased 9.1% by €57.9 mn and amounted to €694.6 mn, compared to €636.7 mn in 2021 and other capital expenditure increased 27.8% by €51.5 mn and amounted to €236.9 mn, compared to €185.4 mn in 2021.

On the contrary, subsidies decreased by 75.8% or €443.6 mn to €141.6 mn, from €585.2 mn in 2021. Interest payable fell by 7.4% or €32.4 mn to €407 mn, down from €439.4 mn in 2021.

Total revenue increased by 14.5% or €1,436.5 mn and amounted to €11,376.2 mn, compared to €9,939.7 mn in the corresponding period of 2021.

In detail, taxes on production and imports increased by 16.9% or €572.3 mn and amounted to €3,960.6 mn, compared to €3,388.3 mn in 2021, of which net VAT revenue increased by 22.4% or €489.3 mn and amounted to €2,671 mn, compared to €2,181.7 mn in 2021. Revenue from taxes on income and wealth increased by 15.5% or €387.1 mn and amounted to €2,876.7 mn, compared to €2,489.6 mn in 2021. Social contributions increased by 14.3% or €388.5 mn and amounted to €3,112.7 mn, compared to €2,724.2 mn in 2021. Revenue from the sale of goods and services increased by 18% or €119.4 mn and amounted to €783.9 mn, compared to €664.5 mn in 2021. Property income increased by 2.1% or €2.3 mn and amounted to €113.6 mn, from €111.3 mn in 2021.

On the contrary, current transfers decreased by 6.5% or €17 mn to €243.6 mn, from €260.6 mn in 2021. Capital transfers decreased by 5.3% or €16.1 mn to €285.1 mn, from €301.2 mn in 2021.