The Republic of Cyprus recorded a robust fiscal surplus of €1.439 billion in 2024, equivalent to 4.1% of its GDP, according to audited data verified by the European Commission. The Cyprus Statistical Service also reported that this strong fiscal performance helped reduce public debt to €21.82 billion, or 62.8% of GDP.
The Fiscal Mechanics: How the Surplus Was Achieved
The impressive surplus was the result of a significant 7.4% surge in total state revenue, which far outpaced a minimal 1.0% rise in total government expenditure.
Total revenues for 2024 climbed by over €1 billion to reach €14.75 billion. The primary driver of this increase was a massive 16.5% jump in revenue from taxes on income and wealth, which alone brought in an additional €539.8 million compared to 2023.
Other key contributions to the revenue boost included:
- A 5.1% rise in taxes on production and imports (including a 6.4% increase in net VAT revenue).
- A 3.2% increase in social contributions.
Expenditure Kept in Check by Capital Cuts
While total government spending appeared almost flat (rising only 1.0%), this figure masks significant internal shifts.
Expenditure on social transfers (+7.4%) and public sector salaries (+7.1%) both grew substantially during the year.
However, these increases were almost entirely offset by major cutbacks in other areas. The government slashed capital expenditure (investment) by 23.6% (a drop of €372 million) and cut “other current expenditure” by 24.3% (a drop of €271.1 million), a move that helped maintain the strong surplus.
Source: Stockwatch.com.cy