Cyprus’ general government recorded a surplus of €654.2 million in the first two months of 2025.
This represents 1.9 per cent of the country’s Gross Domestic Product (GDP), according to preliminary fiscal results released by the state statistical service on Tuesday.
This marks a notable increase compared to the corresponding period in 2024, when a surplus of €531.7 million was recorded, equivalent to 1.6 per cent of GDP.
Total revenue during the January–February 2025 period increased by €303.3 million or 12.5 per cent, reaching €2,724.6 million compared to €2,421.3 million in the same period last year.
Revenue from taxes on production and imports rose by €92.5 million or 12.4 per cent, totalling €835.7 million compared to €743.2 million in 2024.
Within this category, net VAT revenue (after deductions for refunds) increased by €35.8 million or 6.8 per cent, reaching €559 million compared to €523.2 million in the previous year.
Income and wealth tax revenues also saw a significant increase of €95.1 million or 13.2 per cent, reaching €816.8 million, compared to €721.7 million in 2024.
Revenue from interest and dividends showed a modest rise of €0.1 million or 0.6 per cent, amounting to €13 million from €12.9 million.
Income generated from the provision of services increased by €70.5 million or 52.3 per cent, reaching €205.3 million, up from €134.8 million.
Social contributions were also up by €68.9 million or 9.4 per cent, totalling €802.9 million compared to €734 million last year.
By contrast, current transfers decreased by €17.5 million or 26.4 per cent, amounting to €48.9 million compared to €66.4 million in 2024.
Capital transfers also declined, falling by €6.3 million or 75.9 per cent, to €2 million from €8.3 million in the same period last year.
On the expenditure side, total spending for January–February 2025 rose by €180.8 million or 9.6 per cent, reaching €2,070.4 million compared to €1,889.6 million in 2024.
Intermediate consumption increased by €12.7 million or 6.6 per cent, reaching €203.8 million from €191.1 million.
Compensation of employees, which includes imputed social contributions and pensions for public servants, rose by €43.4 million or 7.3 per cent to €637.6 million from €594.2 million.
Social benefits climbed by €71.5 million or 9.1 per cent, totalling €861 million compared to €789.5 million in 2024.
Interest payments increased by €6.6 million or 10.3 per cent, reaching €70.6 million from €64 million.
Moreover, subsidies rose by €1.7 million or 20.7 per cent to €9.9 million from €8.2 million.
The capital account increased by €48.9 million or 49.5 per cent, totalling €147.7 million compared to €98.8 million.
Within this category, gross fixed capital formation rose by €10.1 million or 10.1 per cent, amounting to €110.1 million compared to €100 million in 2024.
Conversely, current transfers declined by €4 million or 2.8 per cent, amounting to €139.8 million compared to €143.8 million in 2024.
The statistical service highlighted that, in the case of the local government sub-sector, estimates were produced due to the lack of sufficient data provided by the relevant authorities at the district and municipal levels.
