In 2023, the Government reported a robust fiscal surplus of €876.3 million, the highest annual figure since 1995 when the Statistical Service began recording data.

The current Minister of Finance, Makis Keravnos, inherited a surplus of €324 million from his predecessor, Konstantinos Petridis, on March 1st. Within nine months – and amid inflation – he added nearly half a billion euros to the government's accounts.

Specifically, preliminary data from the Statistical Service for the January-December period show a surplus for the General Government of €876.3 million (2.9% of GDP), compared to a surplus of €676.3 million (2.4% of GDP) for the same period in 2022.

Indeed, an analysis by Brief, based on the Statistical Service's database, revealed that the surplus for 2023 is recorded as the highest ever since 1995, the year from which the Statistical Service has maintained data. 

Economist Michalis Florentiadis, commenting on these figures for Brief, initially noted an increase in both government revenues and expenditures for 2023.

Mr. Florentiadis added that government revenues were influenced by taxes (recording an increase close to 10%), particularly in the sectors of production, imports, and income. This increase, as he notes, is linked to both inflation and economic growth.

Regarding the positive figures in the government's accounts, Mr. Florentiadis emphasized that it is positive to see the continuation of surpluses.

The surplus, as Mr. Florentiadis points out, indicates that a prudent fiscal policy is being followed, which, he stresses, should continue, especially due to Cyprus's high debt.