Cyprus kicked off 2025 with a healthy budget surplus of €619.1 million, according to early data from the Statistical Service of Cyprus (CyStat), reported by Stockwatch.com.cy. This marks a growth of 7.5% compared to the €575.7 million surplus recorded during the same period last year.
Revenue on the Rise
Between January and March 2025, Cyprus’ total government revenue climbed to €3.64 billion, up €231.2 million (6.8%) year-on-year.
Here’s where that increase came from:
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Social Contributions surged by 13.2%, reaching €1.19 billion, driven by stronger employment and wage growth.
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Income & Wealth Taxes rose 7.7%, totalling €985.9 million, compared to €915.2 million in Q1 2024.
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Sales of Goods & Services jumped 26.4% to €274.6 million, showing robust demand.
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Taxes on Production & Imports were up by 2.6%, hitting €1.1 billion, with net VAT making up €733.2 million of that (a slight increase from €728.4 million).
However, not all areas saw gains:
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Other current transfers fell sharply by 44.2%, dropping to €66 million.
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Property income receivable slipped by 11.5% to €18.7 million.
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Capital transfers also dipped significantly, down 79.7% to just €2.4 million.
Government Spending Also Increases
On the spending side, the government disbursed €3.02 billion in Q1, up 6.6% compared to the €2.83 billion spent during the same quarter in 2024.
Here’s the breakdown:
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Social Transfers increased by €103 million (8.7%), reaching €1.28 billion.
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Employee Compensation (including civil service pensions and contributions) rose 6.5% to €955.5 million.
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Capital Spending was also higher, rising 33.3% to €212 million, split between:
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€176.8 million for capital formation
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€35.2 million for capital transfers
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Smaller increases were also recorded in:
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Subsidies: +€1.1 million (to €36.2 million)
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Property income payable: +€0.4 million (to €72.1 million)
But a few categories saw declines:
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Intermediate Consumption dropped by €24 million (-8.1%), down to €271.1 million.
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Other operational expenses slipped 1.9%, falling to €192.8 million.
Summary
Despite an uptick in government spending, revenues grew even more, allowing Cyprus to post a larger budget surplus than the previous year’s first quarter. The country’s fiscal health appears solid heading into the rest of 2025.
Source: Stockwatch.com.cy
