The General Government of Cyprus reported a surplus of €867.5 million for the period of July to September 2024. This marks a slight decrease compared to the surplus of €872.8 million recorded during the same quarter in 2023. The preliminary fiscal results, published by the Statistical Service on Friday, reflect a mixed performance in government revenue and expenditure.
Revenue Growth and Expenditure Increase
In the third quarter, total government revenue rose by €255.7 million, or 6.9%, reaching €3,966.1 million, up from €3,710.4 million in Q3 2023. Meanwhile, total expenditure increased by €261 million, or 9.2%, amounting to €3,098.6 million, compared to €2,837.6 million in the same period the previous year.
Breakdown of Revenue Performance
Social contributions saw a significant rise, up by €126.2 million (13.2%), totaling €1,085.5 million, compared to €959.3 million in Q3 2023. Additionally, tax revenue from income and wealth grew by €157.3 million (13.9%), amounting to €1,288.4 million, compared to €1,131.1 million in the same quarter of 2023.
Revenue from the sale of goods and services experienced a substantial increase of €66.9 million (30.7%), bringing the total to €284.9 million, up from €218 million in Q3 2023. Property income also saw growth, rising by €3.9 million (14.3%) to €30.8 million, compared to €26.9 million in the previous year.
Declines in Certain Tax Revenues
On the other hand, taxes on production and imports declined by €26.5 million (-2.1%) to €1,215.4 million, down from €1,241.9 million in Q3 2023. This decrease was primarily driven by a €13.1 million (-1.5%) drop in net VAT revenue, which amounted to €834 million compared to €847.1 million in the same quarter last year.
Decrease in Transfers and Capital Revenues
Other current transfers saw a notable decline, down €26.7 million (-30.9%), dropping to €59.7 million from €86.4 million in Q3 2023. Capital transfers experienced an even steeper decrease, falling by €45.5 million (-97%) to €1.4 million, down from €46.9 million in the corresponding quarter of 2023.
Conclusion
Despite a slight drop in surplus compared to last year, Cyprus’ government saw an overall increase in revenue, driven largely by social contributions, taxes on income, and sales of goods and services. However, certain revenue categories, such as VAT and capital transfers, showed declines.
Source: Stockwatch Cyprus