Government revenue grows 6.6 per cent in last quarter of 2024
The Republic of Cyprus significantly narrowed its fiscal deficit in the fourth quarter of 2024, according to preliminary figures published by the Cyprus Statistical Service (Cystat) on Friday.
The general government recorded a deficit of €6 million between October and December 2024, compared with a deficit of €117.9 million during the same period in 2023.
This marks a substantial improvement in the country’s public finances and reflects a positive fiscal trend heading into 2025.
Total government revenue rose to €4.09 billion in the fourth quarter, representing an increase of €255.0 million or 6.6 per cent over the €3.84 billion recorded in the corresponding quarter of 2023.
Among the main revenue drivers, social contributions increased by €164.4 million or 14.6 per cent to reach €1.29 billion.
Revenue from taxes on income and wealth rose sharply by €157.7 million or 16.8 per cent, totalling €1.09 billion.
Revenue from the sale of goods and services climbed by €21.7 million or 7.6 per cent to €308.2 million, while capital transfers edged up by €2.8 million or 1.6 per cent, reaching €176.2 million.
However, taxes on production and imports fell by €23.7 million or 2.0 per cent to €1.16 billion.
Within this category, net VAT revenue did increase slightly by 1.9 per cent, totalling €806.0 million.
Other revenue streams showed notable declines. Firstly, other current transfers fell by €57.9 million or 76.9 per cent to €17.4 million, and property income receivable decreased by €9.9 million or 16.8 per cent to €48.9 million.
On the expenditure side, total spending rose to €4.10 billion, an increase of €143.1 million or 3.6 per cent compared to the same quarter in 2023.
Social transfers were up by €88.9 million or 6.3 per cent, reaching €1.50 billion, while compensation of employees, including civil servant pensions, rose by €54.2 million or 4.8 per cent to €1.17 billion.
Intermediate consumption saw a significant rise of €98.2 million or 23.0 per cent, totalling €524.6 million. Subsidies increased by €7.6 million or 15.2 per cent, reaching €57.7 million.
Property income payable grew by €6.3 million or 6.6 per cent to €100.7 million.
Conversely, other current expenditure dropped sharply by €102.7 million or 28.9 per cent, standing at €252.5 million.
Capital expenditure fell slightly by €9.3 million or 1.9 per cent to €486.6 million, comprising €425.4 million in gross capital formation and €61.2 million in capital transfers.
At the subsector level, the central government recorded a deficit of €444.5 million, and local government recorded a deficit of €36.1 million.
However, the social security funds registered a substantial surplus of €474.6 million, which helped offset the overall deficit.
