Cyprus has achieved a notable fiscal surplus of €702.5 million for the first seven months of 2024, according to preliminary data released by the Statistical Service of Cyprus on Friday. This surplus accounts for 2.2% of the nation’s GDP, a significant rise from the €345.9 million surplus (1.2% of GDP) recorded during the same period in 2023.
Revenue Surge
The fiscal boost is primarily due to a substantial increase in government revenue, which grew by €953.1 million, or 14.2%, year-on-year, reaching €7.662 billion. Key drivers of this revenue growth include:
Revenue from Goods and Services: Up by €163.3 million (43.5%) to €538.7 million.
Current Transfers: Increased by €43.6 million (25.8%) to €212.3 million.
Social Contributions: Rose by €327.9 million (16.2%), totaling €2.348 billion.
Property Income: Increased by €21.0 million (34.5%) to €81.9 million.
Taxes on Production and Imports: Went up by €175.7 million (7.3%) to €2.584 billion.
Net VAT Revenue: Rose by €148.4 million (9.5%) to €1.718 billion.
Taxes on Income and Wealth: Grew by €238.5 million (14.6%) to €1.869 billion.
However, capital transfers saw a decline of €16.9 million (37.2%), falling to €28.5 million.
Expenditure Increase
Government spending from January to July 2024 climbed by €596.6 million, or 9.4%, reaching €6.960 billion. Major expenditure increases included:
Compensation of Employees: Up by €232.8 million (12.2%) to €2.138 billion.
Social Benefits: Increased by €208.1 million (8.1%) to €2.772 billion.
Intermediate Consumption: Rose by €109.5 million (17.8%) to €723.1 million.
Current Transfers: Increased by €99.1 million (22.9%) to €531.8 million.
Interest Payable: Grew by €27.9 million (11.1%) to €279.6 million.
In terms of capital expenditure, the government managed to cut spending with the capital account declining by €61.8 million (12.4%) to €434.9 million. Notable changes include:
Gross Capital Formation: Decreased by €74.0 million (17.4%) to €352.3 million.
Other Capital Expenditures: Increased by €12.2 million (17.3%) to €82.6 million.
Subsidies: Reduced by €19.1 million (19.2%) to €80.6 million.
Source: Stockwatch.com.cy