Cyprus has recorded a fiscal surplus of €155.5 million, equivalent to 0.5 per cent of GDP, during the first half of 2023, according to the latest preliminary results, released on Monday by the state’s statistical service.
This marks a notable improvement compared to the same period in 2022 when Cyprus recorded a deficit of €92.4 million, accounting for 0.3 per cent of GDP.
During the first six months of 2023, total government revenue experienced a robust increase of €680.4 million, constituting a growth of 14.2 per cent.
The total revenue for this period reached €5.468.6 million, compared to €4.788.2 million in the corresponding period in 2022.
A detailed breakdown of the revenue sources indicated that taxes on production and imports saw a substantial rise of €241.9 million, an increase of 13.8 per cent, reaching €1.99 billion in 2023, compared to €1.75 billion in 2022.
Moreover, within this category, net VAT revenue witnessed a significant increase of €164.5 million, a rise of 14.2 per cent, totalling €1.32 billion, compared to €1.15 billion in 2022.
Moreover, revenue from taxes on income and wealth surged by €216.9 million, a rise of 21.2 per cent, amounting to €1.24 billion, compared to €1.02 billion in 2022.
Social contributions also played a part in the overall increase in revenue, rising by €230 million, an increase of 15.5 per cent, and totalling €1.7 billion in 2023, compared to €1.47 billion in 2022.
On the expenditure side, total government spending rose by €432.5 million, an increase of 8.9 per cent, reaching €5.31 billion during the first half of 2023, compared to €4.88 billion in the corresponding period in 2022.
Notably, social benefits saw a substantial increase of €212.6 million, a rise of 10.4 per cent, amounting to €2.25 billion in 2023, compared to €2.03 billion in 2022.
Meanwhile, the compensation of employees, including imputed social contributions and pensions of civil servants, also experienced a notable rise of €161.6 million, an increase of 11.1 per cent, reaching €1.62 billion in 2023, compared to €1.45 billion in 2022.
Despite the overall increase in expenditure, the capital account witnessed growth, rising by €43.0 million, an increase of 14.9 per cent, totalling €330.9 million in 2023, compared to €287.9 million in 2022.