Cyprus’ general government surplus for January 2025 stood at €566.9 million, equivalent to 1.6 per cent of GDP, according to preliminary data released on Monday by the state statistical service.
This represents an increase compared to January 2024 but a decline in relation to December 2024.
In January 2024, the surplus had reached €476.5 million or 1.4 per cent of GDP, while at the end of December 2024, it had surged to €1.5078 billion, accounting for 4.5 per cent of GDP.
Government revenue growth driven by taxation
Total government revenue for January 2025 amounted to €1.55 billion, reflecting an increase of 14.3 per cent, or €194.3 million, compared to January 2024.
This rise was primarily attributed to higher tax revenue from production and imports, which increased by 11.3 per cent to €396.3 million.
Of this amount, net VAT revenue, after deductions for refunds, increased by 3.5 per cent to €249.7 million.
Income and wealth tax revenue also saw a significant increase of 9.7 per cent, reaching €592.7 million. Social contributions rose by 7.8 per cent to €415.1 million.
A particularly notable surge was observed in revenue from the provision of services, which soared by 107.2 per cent to €109.3 million.
Meanwhile, income from interest and dividends climbed by 37.4 per cent to €10.3 million.
In contrast, capital transfers recorded a steep decline of 50.4 per cent, dropping to €1.8 million from €3.6 million in January 2024.
Government expenditure rises by 11.8 per cent
Total government expenditure for January 2025 reached €988 million, marking an increase of 11.8 per cent, or €103.9 million, compared to the same period in 2024.
A significant rise was recorded in personnel compensation, which climbed by 9.9 per cent to €314.3 million.
Social benefits also grew by 12.5 per cent to €445.7 million, while subsidies nearly doubled to €8.7 million from €4.3 million in January 2024.
Current transfers saw a substantial increase of 21.3 per cent, reaching €74.6 million.
Capital investment rose by 10.4 per cent to €28.1 million, whereas intermediate consumption, covering expenditure on goods and services used in the production process, recorded a marginal rise of 0.7 per cent.
Breakdown of the surplus
The general government surplus of €566.9 million was largely derived from the central government, which accounted for €440.5 million.
The local government sector posted a surplus of €20.3 million, while social security funds contributed a surplus of €106.1 million.
Finally, the statistical service clarified that, due to the non-submission of data by relevant authorities, the reported figures for the local government sector were based on estimates.
