The General Government of Cyprus recorded a surplus of €557.6 million, equal to 1.6% of GDP, in the period from January to June 2025, according to preliminary fiscal results released by the Statistical Service of Cyprus (Cystat). The surplus mirrors the same period in 2024, when it stood at €550.7 million, also representing 1.6% of GDP.
Revenue Performance
Total government revenue for the first half of 2025 reached €7.12 billion, an increase of €393.6 million or 5.9% compared with €6.72 billion in the same period of 2024.
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Income and wealth taxes rose by €171.3 million (12%) to €1.59 billion.
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Social contributions climbed by €208.3 million (9.7%) to €2.36 billion.
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Property income more than doubled, increasing by €54 million to €103.1 million.
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Taxes on production and imports grew by €121.4 million (5.4%) to €2.38 billion, with net VAT revenue up €73.2 million (4.8%) to €1.59 billion.
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Revenue from goods and services rose slightly by €3.8 million (0.8%) to €480.9 million.
Conversely, current transfers dropped by €121.1 million (-40.2%) to €180.2 million, while capital transfers fell by €44.1 million (-63.3%) to €25.6 million.
Expenditure Trends
Government spending in January–June 2025 totalled €6.56 billion, an increase of €386.7 million (6.3%) compared with €6.17 billion in the same period of 2024.
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Compensation of employees rose by €110.8 million (6.1%) to €1.92 billion.
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Social benefits increased by €178.2 million (6.9%) to €2.75 billion.
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Intermediate consumption was up €36.5 million (5.8%) to €664.7 million.
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Interest payments rose €22.3 million (9.8%) to €250.9 million.
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Capital expenditure jumped by €91.1 million (21.7%) to €510.2 million, driven by a €58.2 million (16.1%) rise in gross capital formation to €419.5 million and a €32.9 million (56.9%) increase in other capital spending to €90.7 million.
On the other hand, current transfers fell by €47.6 million (-10.8%) to €392.8 million, and subsidies declined by €4.6 million (-6.1%) to €70.8 million.
Cystat noted that for certain General Government entities, particularly within the Local Government subsector, estimates were used due to incomplete data submissions by relevant authorities.
Source: Stockwatch