CYSTAT reports a General Government surplus of €552.9 million (1.4% of GDP) for January–May 2026. Higher tax and VAT revenues drove total income to €6,205.3 million, outstripping a 5.1% rise in total public spending.

Preliminary Fiscal Growth Trends

A General Government surplus of €552.9 mn (1.4% of GDP) is indicated for the period of January-May 2026, according to the preliminary General Government fiscal results, prepared by the Statistical Service of Cyprus (CYSTAT) and published on Tuesday, compared to a surplus of €544.5 mn (1.5% of GDP) that was recorded during the period of January-May 2025.

Breakdown of Rising Government Revenues

During the period of January-May 2026, total revenue increased by €282.5 mn (4.8%) and amounted to €6,205.3 mn, compared to €5,922.8 mn in the corresponding period of 2025. In detail, revenue from taxes on income and wealth increased by €115.2 mn (8.4%) and amounted to €1,488.2 mn, compared to €1,373 mn in 2025. Social contributions increased by €102.2 mn (5.2%) and amounted to €2,065.2 compared to €1,963 mn in 2025. Taxes on production and imports increased by €93.1 mn (4.9%) and amounted to €1,995.7 mn, compared to €1,902.6 mn in 2025, of which net VAT revenue increased by €138 mn (11%), and amounted to €1,389.6 mn, compared to €1,251.6 mn in 2025. Capital transfers increased by €26.4 mn and amounted to €38.8 mn, compared to €12.4 mn in 2025. Revenue from the sale of goods and services increased by €9.4 mn (2.2%) and amounted to €433.2 mn, compared to €423.8 mn in 2025. On the contrary, property income decreased by €24.2 mn (-26.1%) to €68.5 mn, from €92.7 mn in 2025. Current transfers decreased by €39.6 mn (-25.5%) to €115.7 mn, compared to €155.3 mn in 2025.

Expenditure Increases and Key Allocations

During the period of January-May 2026, total expenditure increased by €274.1 mn (5.1%) and amounted to €5,652.4 mn, compared to €5,378.3 mn in the corresponding period of 2025. In detail, intermediate consumption increased by €52 mn (9.7%) and amounted to €590.3 mn, compared to €538.3 mn in 2025. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €47.6 mn (3%) and amounted to €1,637.8 mn, compared to €1,590.2 mn in 2025. Social benefits increased by €108.2 mn (4.9%) and amounted to €2,306.2 mn, compared to €2,198 mn in 2025. Interest payable increased by €32.3 mn (15.7%) and amounted to €238.4 mn, compared to €206.1 mn in 2025. Current transfers increased by €70.5 mn (19.6%) and amounted to €429.3 mn, compared to €358.8 mn in 2025.

Deficits in Capital Accounts and Missing Subsector Data

The capital account decreased by €26.8 mn (-6%) to €418.7 mn, from €445.5 mn in 2025, of which gross capital formation decreased by €25.4 mn (-7.2%) to €327.7 mn, from €353.1 mn in 2025 and other capital expenditure decreased by €1.5 mn (-1.6%) to €90.9 mn, from €92.4 mn in 2025. Furthermore, subsidies decreased by €9.6 (-23.2%) mn to €31.8 mn, from €41.4 mn in 2025. CYSTAT noted that for a number of entities of the General Government and specifically for the Local Government Subsector, estimates have been produced by the Statistical Service, due to non-submission of sufficient data by the competent authorities.

Source: CNA(ΚΥΠΕ)