Over half a billion euro in government surplus so far this year

Preliminary General Government fiscal results indicate a surplus of €556.4 mn for the period of January-October 2022, according to data prepared and published by the Statistical Service of Cyprus on Wednesday.

The surplus is 2.1% of Cyprus's GDP. In comparison, for the same period in 2022, there was a deficit of €329.5 mn (1.4% of GDP).

Specifically, during the period of January-October 2022, total expenditure increased by €169.8 mn (2.1%) and amounted to €8,233.9 mn, compared to €8,064.1 mn in the corresponding period of 2021.

In detail, social benefits increased by €261.9 mn (8.6%) and amounted to €3,300.9 mn, compared to €3,039 mn in 2021. Compensation of employees increased by €120 mn (5.2%) and amounted to €2,434.8 mn, compared to €2,314.8 mn in 2021. Intermediate consumption increased by €166.4 mn (22.3%) and amounted to €913.6 mn, compared to €747.2 mn in 2021. Current transfers increased by €10.2 mn (2.1%) and amounted to €497.4 mn, compared to €487.2 mn in 2021.

Furthermore, the capital account increased by €163.3 mn (32.4%) and amounted to €667.3 mn, compared to €504 mn in 2021. In detail, gross capital formation increased by €122.1 mn (30.4%) and amounted to €523.3 mn, compared to €401.2 mn in 2021 and other capital expenditure increased by €41.1 mn (40%) and amounted to €144 mn, compared to €102.9 mn in 2021.

On the contrary, subsidies decreased by €474.5 mn (85.2%) to €82.5 mn, from €557 mn in 2021. Interest payable decreased by €77.5 mn (18.7%) to €337.4 mn, from €414.9 mn in 2021.

At the same time, total revenue increased by €1,055.7 mn, or by 13.6% and amounted to €8,790.3 mn, compared to €7,734.6 mn in the corresponding period 2021.

According to the official data, in detail taxes on production and imports increased by €441.1 mn (15.8%) and amounted to €3,231.5 mn, compared to €2,790.4 mn in 2021, of which net VAT revenue increased by €351.6 mn (19.3%) and amounted to €2,175.3 mn, compared to €1,823.7 mn in 2021. Revenue from taxes on income and wealth increased by €379.9 mn (21.8%) and amounted to €2,121.2 mn, compared to €1,741.3 mn in 2021.

Social contributions increased by €298.2 mn (13.8%) and amounted to €2,460.9 mn, compared to €2,162.7 mn in 2021. Revenue from the sale of goods and services increased by €29.6 mn (5.6%) and amounted to €562.2 mn, compared to €532.6 mn in 2021. Property income increased by €1.1 mn (1.1%) and amounted to €104.9 mn, compared to €103.8 mn in 2021. Current transfers increased by €1.7 mn (1%) and amounted to €169.9 mn, compared to €168.2 mn in 2021.

On the contrary, capital transfers decreased by €95.8 mn (40.7%) to €139.7 mn, from €235.5 mn in 2021.