The General Government has recorded a substantial surplus reaching €1.4 billion (4.2% of GDP) in the period January - September 2024, more than double from the €679.9 million surplus (2.2% of GDP) recorded in the same period last year, according to preliminary data released by the Cyprus Statistical Service on Thursday.

Revenue grows by 6.8%

According to the data, government revenue saw an increase of €668.9 million, up by 6.8% to a total of €10.5 billion. Main contributors included a 16.4% rise in income and wealth taxes, which reached €2.7 billion, and VAT revenues, which grew by 6.9% to €2.3 billion.

There was also a significant boost in revenue from goods and services, up by 26.1%, and property income, which surged 27.8% to €100.6 million.

However, capital transfers and social contributions saw declines of 29.6% and 1%, respectively.

Expenditure slightly down

Total government spending decreased slightly by 0.6% to €9.1 billion.

Despite a 7.7% rise in employee compensation costs and an 8.6% increase in social benefits, reductions were achieved in other areas.

Capital expenditure dropped sharply by 38.2%, with cuts in subsidies, current transfers, and capital formation contributing to the decrease.