Cyprus recorded a general government surplus of €580.6 million in the first quarter of 2025, according to preliminary data published by the Cyprus Statistical Service (Cystat) on Friday.
The surplus represents 1.6 per cent of GDP and marks a slight increase from the €575.7 million surplus (1.7 per cent of GDP) recorded during the same period in 2024.
Total government revenue for January to March 2025 rose to €3.62 billion, an increase of €214.5 million or 6.3 per cent compared to the same period in 2024.
This growth was driven by several key areas, including a 10.5 per cent rise in social contributions, which reached €1.16 billion, and a 29.1 per cent increase in sales of goods and services, totalling €280.5 million.
Revenue from taxes on income and wealth increased by 7.7 per cent to €985.9 million, while taxes on production and imports rose by 2.7 per cent to €1.10 billion.
Additionally, net VAT receipts rose marginally by 0.4 per cent to €731.6 million.
At the same time, current transfers declined sharply by 40.5 per cent to €70.4 million, and capital transfers dropped by 78 per cent to €2.6 million.
The data also showed that property income also fell by 8.1 per cent to €19.4 million.
The statistical service also reported that government expenditure for the first quarter reached €3.04 billion, representing a 7.4 per cent increase, or €209.5 million, compared to the corresponding period in 2024.
The largest expenditure increases came from social benefits, which grew by 9.4 per cent to €1.28 billion, and compensation of employees, which rose by 6.4 per cent to €954.6 million.
Furthermore, capital expenditure saw a significant jump of 38.2 per cent, reaching €215.4 million.
Within this category, gross capital formation rose by 13 per cent to €168.2 million, while other capital expenditure surged to €47.2 million from €7.0 million—a rise of 574.3 per cent.
Meanwhile, intermediate consumption decreased by 4.3 per cent to €282.4 million, subsidies declined by 5.2 per cent to €36.2 million, and current transfers fell slightly by 2 per cent to €192.7 million.
Interest payments increased marginally by 1.7 per cent to €72.9 million.
The fiscal balance was further broken down by government subsector.
The central government recorded a surplus of €306.7 million, while social security funds contributed €280.6 million.
However, local government posted a small deficit of €6.7 million.
The statistical service noted that data for the local government subsector remains based on estimates, due to insufficient submissions from district self-government organisations and municipal authorities.
It added that all figures were compiled in line with the European System of Accounts 2010 (ESA 2010).
