{"id":120856,"date":"2025-12-05T17:51:52","date_gmt":"2025-12-05T15:51:52","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=120856"},"modified":"2025-12-05T17:51:52","modified_gmt":"2025-12-05T15:51:52","slug":"cypruss-fiscal-surplus-shrinks-to-3-1-of-gdp-amid-soaring-public-investment","status":"publish","type":"post","link":"https:\/\/lamaisonestates.com\/he\/cypruss-fiscal-surplus-shrinks-to-3-1-of-gdp-amid-soaring-public-investment\/","title":{"rendered":"Cyprus&#8217;s Fiscal Surplus Shrinks to 3.1% of GDP Amid Soaring Public Investment"},"content":{"rendered":"<p data-path-to-node=\"2\">Cyprus\u2019s General Government budget maintained a healthy surplus during the first ten months of 2025, but the overall fiscal position moderated compared to the previous year. Preliminary results from the Statistical Service of Cyprus (CYSTAT) show a surplus of \u20ac1,119 million, equivalent to 3.1% of GDP, for the January\u2013October 2025 period. This represents a decrease from the \u20ac1,320.9 million surplus (3.8% of GDP) recorded in the corresponding 2024 period.<\/p>\n<p data-path-to-node=\"3\">The reduction in the surplus is primarily due to a sharp acceleration in government spending, particularly on capital projects, which outpaced robust growth in revenue from income and social contributions.<\/p>\n<h3 data-path-to-node=\"5\"><b>Revenue Boosted by Income and Contributions<\/b><\/h3>\n<p data-path-to-node=\"6\">Total government revenue increased by 5.6%, adding \u20ac658.5 million to reach \u20ac12,332.5 million for the ten-month period. This growth was driven by two key areas:<\/p>\n<ul data-path-to-node=\"7\">\n<li>\n<p data-path-to-node=\"7,0,0\"><b>Social Contributions:<\/b> The largest absolute increase came from social contributions, which grew by 8.2% (an increase of \u20ac296.3 million) to \u20ac3,906.7 million.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"7,1,0\"><b>Income &amp; Wealth Taxes:<\/b> Revenue from income and wealth taxes also rose significantly by 5.3% (an increase of \u20ac154.6 million) to \u20ac3,051 million.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"7,2,0\"><b>Property Income &amp; Sales:<\/b> Property income saw a massive surge of 40.1%, while revenue from the sale of goods and services increased by 18.7%.<\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"8\">Interestingly, revenues from taxes on production and imports were nearly flat, increasing by a marginal 0.2%, with net VAT revenue actually declining by 0.9%.<\/p>\n<h3 data-path-to-node=\"10\"><b>Expenditure Rises Sharply Due to Capital Spending<\/b><\/h3>\n<p data-path-to-node=\"11\">Total government expenditure grew at a faster pace than revenue, rising 8.3% (an increase of \u20ac860.4 million) to reach \u20ac11,213.5 million.<\/p>\n<p data-path-to-node=\"12\">The largest driver of this increased spending was the Capital Account, which saw a substantial 36% surge, amounting to \u20ac1,163.8 million. This significant investment included:<\/p>\n<ul data-path-to-node=\"13\">\n<li>\n<p data-path-to-node=\"13,0,0\"><b>Gross Capital Formation:<\/b> Up 12.3% to \u20ac822.3 million.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"13,1,0\"><b>Other Capital Expenditure:<\/b> Increased sharply by \u20ac217.9 million.<\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"14\">Other significant expenditure increases were recorded in core current spending:<\/p>\n<ul data-path-to-node=\"15\">\n<li>\n<p data-path-to-node=\"15,0,0\"><b>Social Benefits:<\/b> Increased by 7.1% (an increase of \u20ac299.7 million) to \u20ac4,532.8 million.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"15,1,0\"><b>Compensation of Employees:<\/b> Including wages and pensions for civil servants, this category rose by 6.7% (an increase of \u20ac201 million) to \u20ac3,204.3 million.<\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"16\">While current transfers and subsidies saw minor decreases, the overall acceleration of spending, particularly in capital projects, was the primary factor in reducing the overall fiscal surplus percentage year-on-year.<\/p>\n<p data-path-to-node=\"17\"><em>Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Cyprus\u2019s General Government budget maintained a healthy surplus during the first ten months of 2025, but the overall fiscal position moderated compared to the previous year. Preliminary results from the Statistical Service of Cyprus (CYSTAT) show a surplus of \u20ac1,119 million, equivalent to 3.1% of GDP, for the January\u2013October 2025 period. This represents a decrease [&hellip;]<\/p>","protected":false},"author":9,"featured_media":120857,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/120856"}],"collection":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/comments?post=120856"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/120856\/revisions"}],"predecessor-version":[{"id":120858,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/120856\/revisions\/120858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/120857"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=120856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=120856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=120856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}