Cyprus’ general government recorded a surplus of approximately €600 million in the first quarter of 2024, reflecting a 58 per cent increase from the previous year, driven by revenue growth outpacing expenditure, according to a report by the state’s statistical service.

According to the report, preliminary fiscal results for January-March 2024 indicate a general government surplus of €598.3m, reflecting a significant rise when compared to €376.4m in the same period in 2023.

Revenue Increase

Total revenue for January-March 2024 rose by €389.9m, an increase of 13.5 per cent, reaching €3.28 billion, up from €2.89 billion in the corresponding period of 2023.

Taxes on production and imports increased by €65.8m, a rise of 6.4 per cent, totalling €1.09bn compared to €1.02bn in Q1 2023.

Moreover, net VAT revenue, after deductions, rose by €69.8m, an increase of 10.2 per cent, amounting to €752.5m, up from €682.7m in the same period of 2023.

Social contributions saw a significant rise of €108.3m, an increase of 12.5 per cent, reaching €977.9m, compared to €869.6m in Q1 2023.

Income and wealth taxes increased by €135.7m, a rise of 17.4 per cent, totalling €915.2m, up from €779.5m in the same quarter last year.

Revenue from goods and services provision rose by €69.6m, an increase of 46.8 per cent, reaching €218.3m, compared to €148.7m in Q1 2023.

Capital transfers increased by €6.9m, totalling €11.0m, up from €4.1m in the same period last year.

Property income receivable rose slightly by €0.2m, an increase of 0.8 per cent, totalling €24.4m, compared to €24.2m in Q1 2023.

Current transfers increased by €3.4m, a rise of 8.2 per cent, reaching €45.0m, compared to €41.6m in the same quarter last year.

Expenditure Increase

Total expenditures for January-March 2024 increased by €168.0m, a rise of 6.7 per cent, amounting to €2.68bn, up from €2.51bn in the same period in 2023.

Specifically, social benefits rose by €70.6m, an increase of 7 per cent, reaching €1.08bn, compared to €1.01bn in Q1 2023.

Compensation of employees (including imputed social contributions and pensions of public servants) increased by €113.9m, a rise of 14.4 per cent, totalling €903.7m, up from €789.8m in the same quarter last year.

Subsidies rose by €1.4m, an increase of 4.3 per cent, reaching €33.9m, compared to €32.5m in Q1 2023.

Other current expenditures increased by €29.5m, a rise of 16.4 per cent, totalling €209.0m, compared to €179.5m in the same period last year.

Intermediate consumption increased by €20.9m, a rise of 8.4 per cent, reaching €270.3m, compared to €249.4m in Q1 2023.

Conversely, the capital account decreased by €61.2m, a drop of 34.0 per cent, totalling €118.6m in the current period, with €91.9m in capital investments and €26.7m in capital transfers.

This compares to €179.8m in Q1 2023, which included €151m in capital investments and €28.8m in capital transfers.

Finally, property income payable decreased by €7.1m, a drop of 9.9 per cent, amounting to €65m, compared to €72.2m in the same quarter last year.