Overview Of Fiscal Performance
Cyprus recorded a general government surplus of €594.3 million in January–February, equal to 1.5% of GDP, according to preliminary data from Cystat. The figure declined from €663.4 million, or 1.8% of GDP, in the same period last year.
Revenue Highlights
Total revenue reached €2.71 billion, up €23.4 million, or 0.9%, year over year. Income and wealth taxes increased by €32.7 million to €842.6 million, a 4% rise. Social contributions grew 2.2%, from €817.5 million to €835.1 million. Current transfers increased 3.3%, adding €1.4 million.
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Shifts In Production And Tax Collections
Taxes on production and imports declined by €12.8 million, or 1.6%, to €802.7 million. Net VAT revenue increased 3.9%, rising by €21.7 million to €580.7 million. Property income fell 19.5% to €10.7 million. Revenue from goods and services declined 6.6% to €173.6 million, while capital transfers decreased 17.5% to €3.3 million.
Expenditure Trends
Total expenditure reached €2.11 billion, up €92.5 million, or 4.6%, compared with the previous year. Intermediate consumption increased slightly to €192.5 million. Employee compensation rose 1.2% to €644.2 million. Social benefits increased 5.3% to €898.5 million, while current transfers rose 38.5% to €187.4 million.
Capital And Other Expenditures
Capital expenditure declined by €11.0 million, or 8.4%, to €119.5 million. Gross capital formation fell 13.5% to €85.5 million. Other capital spending increased 7.3% to €34.0 million. Interest payments remained stable at €68.1 million, while subsidies declined to €6.8 million.
Looking Ahead
Cystat said some data, particularly from local government entities, remain provisional due to incomplete submissions. Revisions may follow as additional data becomes available.
