The general government surplus in Cyprus surged by €469.9 million for January-August 2024, reaching €1.36 billion or 4.3 per cent of GDP.
This total contrasts with the €898.5m (3.0 per cent of GDP) for the corresponding period of 2023, according to preliminary fiscal results from Cystat.
A total revenue boost of €1.07bn (13.0 per cent) drove this growth, bringing revenue to €9.29bn compared to €8.22bn last year.
Taxes on production and imports rose by €275.4m (9.8 per cent) to €3.07bn, of which VAT revenue, net of refunds, increased by €247.2m (13.6 per cent) to €2.07bn from €1.82bn in 2023.
Income and wealth tax revenues saw an even more substantial rise, climbing by €371.7m (17.3 per cent) to €2.51bn, while social contributions jumped by €365.7m (15.7 per cent) to €2.69bn.
Additionally, income from services grew by €143.4m (30.2 per cent) to €618.4m.
However, current transfers decreased by €71.4m (-23.5 per cent) to €232.9m, with capital transfers similarly reduced by €32.8m (-31.2 per cent).
On the expenditure side, spending grew by €603.5m (8.2 per cent) in January-August 2024, totallng €7.93bn, a rise attributed to a higher public payroll and increased social benefits.
Staff remuneration, which includes civil servant pensions, rose by €262.4m (12.0 per cent) to €2.45bn, while social benefits increased by €242.3m (8.4 per cent) to €3.13bn.
Despite increased interest payments of €37m (14.2 per cent) and current transfers climbing by €117.3m (23.6 per cent), the capital account saw a €74.3m (-12.4 per cent) decline.
Within this, fixed capital investments fell by €69.4m (-13.9 per cent) to €429.3m, while subsidies were also limited to €86.6m, marking a 26.5 per cent decrease from €117.8m in 2023.
