Surplus of €363 mn recorded in Cyprus in Jan-Feb 2023

A surplus of €363 mn or 1.3% of GDP for the period of January-February 2023, according to the preliminary General Government fiscal results, published by the Statistical Service of Cyprus on Friday. In the corresponding period of 2022, a surplus of €208.3 mn or 0.8% of GDP was recorded.

During the period of January-February 2023, total expenditure increased by €117.4 mn, or 8.1% and amounted to €1,573.9 mn, compared to €1,456.6 mn in the corresponding period of 2022.

In detail, social benefits increased by 9.1% or €54 mn and amounted to €645.3 mn, compared to €591.3 mn in 2022. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by 9.4% or €44.3 mn and amounted to €517.4 mn, compared to €473.1 mn in 2022. Intermediate consumption went up by 13.5%, by €18.5 mn and amounted to €155.6 mn, compared to €137.1 mn in 2022. Subsidies increased by €9.9 mn, up 75% and amounted to €23.1 mn, compared to €13.2 mn in 2022.

The capital account increased by 81.7% or €44.6 mn and amounted to €99.2 mn, compared to €54.6 mn in 2022. In detail, gross capital formation increased by €45 mn and amounted to €84.5 mn, compared to €39.5 mn in 2022 and other capital expenditure decreased by €0.4 mn, down by 2.6% to €14.7 mn, from €15.1 mn in 2022.

On the other hand, current transfers decreased by €46.8 mn, down by 44.1% to €59.3 mn, from €106.1 mn in 2022. Interest payable decreased by €7.2 mn or 8.8% to €74 mn, from €81.2 mn in 2022.

During the period of January-February 2023, total revenue increased by €272.1 mn, up by 16.3% and amounted to €1,936.9 mn, compared to €1,664.8 mn in the corresponding period of 2022.

In detail, taxes on production and imports increased by 24.4% or €133.4 mn and amounted to €678.9 mn, compared to €545.5 mn in 2022, of which net VAT revenue increased by €108.4 mn, up by 30.1% and amounted to €468.3 mn, compared to €359.9 mn in 2022. Revenue from taxes on income and wealth increased by 23.1% or €110.9 mn and amounted to €591.3 mn, compared to €480.4 mn in 2022. Social contributions increased by €27.6 mn (5,5%) and amounted to €526.8 mn, compared to €499.2 mn in 2022. Revenue from the sale of goods and services increased by €4.2 mn (4.7%) and amounted to €93.2 mn, compared to €89 mn in 2022. Capital transfers increased by €0.5 mn, up by 14.7% and amounted to €3.9 mn, compared to €3.4 mn in 2022.

Current transfers decreased by €4.2 mn or 13.1% to €27.8 mn, from €32 mn in 2022. Property income decreased by €0.3 mn, falling 2% to €15 mn, from €15.3 mn in 2022.