€651.4 million of government surplus recorded until September 2022

Cyprus' general government surplus rose to 651.4 million for the period of July-September 2022 compared with a surplus of €319.5 mn recorded in the respective period of last year, according to preliminary general government fiscal results.

Expenditure

During the period of July-September 2022, total expenditure increased by €164.5 mn (+6.9%) and amounted to €2,557.1 mn, from €2,392.6 mn in the corresponding period 2021.

Specifically, social transfers increased by €44.7 mn (+4.9%) and amounted to €961.8 mn, compared to €917.1 mn in the corresponding quarter of 2021. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €27.2 mn (+3.9%) and amounted to €731 mn, compared to €703.8 mn in the third quarter 2021.

Intermediate consumption increased by €62.4 mn (+25.4%) and amounted to €308.3 mn, compared to €245.9 mn in the corresponding quarter of 2021.

The capital account increased by €102.5 mn (+54.7%) and amounted to €290mn (€233.8 mn capital formation and €56.2 mn capital transfers), compared to €187.5 mn (€161.4 mn capital formation and €26.1 mn capital transfers) in the third quarter of 2021.

On the contrary, subsidies decreased by €44.5 mn (-66.3%) to €22.6 mn, from €67.1 mn in the corresponding quarter of 2021.

Property income payable decreased by €14.4 mn (-10.4%) to €124.1 mn, from €138.5 mn in the third quarter of 2021. Current transfers decreased by €13.4 mn (-10.1%) to €119.3 mn, from €132.7 mn in the corresponding quarter of 2021.

Revenue

During the period of July-September 2022, total revenue increased by €496.5 mn (+18.3%) and amounted to €3,208.5 mn, compared to €2,712.1 mn in the corresponding period 2021.

Taxes on production and imports increased by €226.1 mn (+25.1%) and amounted to €1,128.1 mn, compared to €902 mn in the corresponding quarter of 2021, of which net VAT revenue increased by €185.7 mn (+31.7%) and amounted to €772.2 mn, compared to €586.5 mn in the third quarter of 2021.

Social contributions increased by €54.1 mn (+7.9%) and amounted to €738.5 mn, compared to €684.4 mn in the corresponding quarter of 2021. Revenue from taxes on income and wealth increased by €175.3 mn (+21.7%) and amounted to €981.9 mn, compared to €806.6 mn in the third quarter of 2021.

Capital transfers increased by €53.5 mn and amounted to €80.3 mn, compared to €26.8 mn in the corresponding quarter of 2021.

Property income receivable increased by €3.2 mn (+7.4%) and amounted to €45.8 mn, compared to €42.6 mn in the third quarter of 2021.

Current transfers increased by €18.4 mn (+33%) and amounted to €74.2 mn, compared to €55.8 mn in the corresponding quarter of 2021.

Revenue from the sale of goods and services decreased by €34.1 mn (-17.6%) to €159.8 mn, from €193.9 mn in the third quarter of 2021.