Cyprus recorded a surplus of €455.9 million, equivalent to 1.4% of its Gross Domestic Product (GDP), according the preliminary fiscal results released by CySTAT. This represents an increase from the surplus of €368.6 million, or 1.2% of GDP, registered during the same month in 2023.
Revenue increased at a faster pace than expenditure in January 2024.
Revenue Soars
Cyprus’s total revenue for January 2024 saw a substantial upswing, by €153.0 million or 13.2% compared to the same period last year.
Revenue reached €1,316.0 million, compared to €1,163.0 million in January 2023. The surge in revenue was due to the significant increases in taxes on income and wealth, which soared by €99.0 million (22.4%) to reach €540.5 million. Social contributions also witnessed a substantial increase, rising by €42.3 million (14.1%) to reach €343.1 million. Current transfers increased by €2.9 million (25.5%) and amounted to €14.1 million, compared to €11.2 million in 2023. Revenue from the sale of goods and services increased by €3.6 million (7.2%) and amounted to €53.3 million, compared to €49.7 million in 2023. Property income increased by €3.5 million (48.6%) and amounted to €10.6 million, compared to €7.1 m million n in 2023. Capital transfers increased by €2.1 million and amounted to €4.0 million, compared to €1.9 million in 2023.
However, not all sectors saw an increase. Revenue from taxes on production and imports experienced a slight decrease, dropping by €0.3 million (-0.1%) to €350.5 million. Notably, net VAT revenue decreased by €22.1 million (8.4%) to €241.3 million.
Expenditure Rises
Total expenditure for January 2024 increased by €65.6 million (8.3%), totaling €860.1 million compared to €794.4 million in January 2023. Social benefits saw a significant uptick, rising by €38.1 million (11.6%) to reach €365.6 million. Similarly, compensation of employees, including imputed social contributions and pensions of civil servants, saw a substantial increase, rising by €41.5 million (16.2%) to €297.3 million.
Intermediate consumption also saw a slight increase, rising by €0.4 million (0.5%) to €76.3 million. Meanwhile, subsidies, current transfers, and interest payable experienced decreases during the period.
The capital account witnessed growth, increasing by €3.1 million (15.4%) to €23.4 million, with gross capital formation rising by €4.3 million (20.0%) to €25.8 million.
In contrast, subsidies plummeted by €6.8 million, marking a staggering decrease of 61.3%, dropping to €4.3 million from €11.1 million in 2023. Additionally, current transfers saw a decline of €4.0 million, representing a decrease of 6.5%, with figures falling to €58.1 million from €62.1 million in the previous year. Furthermore, interest payable decreased by €6.6 million, indicating a reduction of 15.9%, settling at €35.1 million compared to €41.7 million in 2023.
(Source: CNA)
