Cyprus posts €1.16 billion surplus despite rising expenditure

Cyprus recorded a general government fiscal surplus of €1.16 billion in the period from January to November 2025, with public finances remaining positive despite higher spending driven by wages, social benefits and capital investment.

According to preliminary figures published on Thursday by the Cyprus Statistical Service (Cystat), the surplus amounted to 3.2 per cent of GDP, compared with a surplus of €1.31 bn, or 3.8 per cent of GDP, in the same period of 2024.

The Statistical Service said total government revenue increased by €748.30 million, or 5.8 per cent year on year, reaching €13.57 bn in the first eleven months of 2025, up from €12.82 bn in the corresponding period of 2024.

Revenue from taxes on income and wealth rose by €165.20m, or 5.4 per cent, to €3.25 bn.

Social contributions recorded a strong increase of €325.30m, or 8.1 per cent, reaching €4.32 bn.

Property income rose sharply by €37.60m, or 37.2 per cent, to €138.60m.

Revenue from taxes on production and imports increased by €34.60m, or 0.8 per cent, to €4.42 bn.

Within that category, net VAT revenue declined by €13.50m, or 0.5 per cent, to €2.98 bn.

Revenue from the sale of goods and services increased by €155.50m, or 18.5 per cent, reaching €996.20m.

Capital transfers rose by €47.50m, or 66.7 per cent, to €118.70m.

By contrast, current transfers on the revenue side declined by €17.40m, or 5.0 per cent, to €332.30m.

On the expenditure side, total government spending increased by €903.30m, or 7.8 per cent, reaching €12.41 bn from €11.51 bn a year earlier.

Compensation of employees, including imputed social contributions and civil service pensions, rose by €210.00m, or 6.3 per cent, to €3.53 bn.

Social benefits increased by €328.50m, or 7.1 per cent, reaching €4.98 bn.

Intermediate consumption grew by €69.30m, or 5.5 per cent, to €1.34 bn.

Spending under the capital account surged by €345.90m, or 36.1 per cent, to €1.30 bn.

Within capital expenditure, gross capital formation increased by €119.20m, or 14.7 per cent, reaching €929.90m.

Other capital expenditure rose significantly by €226.70m, reaching €374.40m compared with €147.70m a year earlier.

In contrast, interest payable declined slightly by €2.10m, or 0.5 per cent, to €406.80m.

Current transfers on the expenditure side fell by €34.30m, or 4.6 per cent, to €707.60m.

Subsidies also declined by €14.00m, or 9.1 per cent, to €139.30m.

Cystat said the net lending position of the general government narrowed to €1.16 bn in January to November 2025 from €1.31 bn in the same period of 2024.

The central government surplus declined to €105.20m from €184.90m a year earlier.

The local government subsector moved to a surplus of €11.30m, compared with a deficit of €22.60m in the same period of 2024.

The social security funds surplus decreased to €1.04 bn from €1.15 bn.

Cystat stressed that for a number of general government entities, particularly within local government, estimates were produced due to the non-submission of sufficient data by the competent authorities.