The Statistical Service of Cyprus (CyStat) announced a notable increase in the General Government surplus for January to September 2023, achieving €931.6 million or 3.1% of GDP. This figure marks a notable rise from the €727.1 million surplus (2.6% of GDP) recorded in the same period in 2022.

CyStat's report, derived from various financial management systems including the Financial Information Management Automation System (FIMAS), details the revenues and expenditures of the Central Government, Extra Budgetary Funds, Social Security Funds, Municipalities and Communities, and Semi-Government Organizations.

For the first nine months of 2023, total revenue surged by 11.0%, reaching €9,050.2 million — up from €8,151.1 million in 2022. This increase was primarily driven by a significant rise in taxes on production and imports, jumping by €286.1 million (9.6%) to €3,262.1 million. Notably, net VAT revenue alone grew by €174.7 million (8.8%). Income and wealth tax revenue also saw a substantial increase, up by €290.5 million (14.5%).

Furthermore, social contributions climbed by 15.4%, totaling €2,580.5 million, and current transfers rose by 35.5%. However, property income saw a decline of 22.7%, and capital transfers dropped by 45.0%.

On the expenditure front, the total outlay for the January-September 2023 period rose by 9.4% to €8,118.6 million, compared to €7,424.0 million in the previous year. Significant increases were observed in social benefits, employee compensation, subsidies, and current transfers, all contributing to this rise. The capital account too saw an 11.0% increase, aided by a 25.2% hike in gross capital formation. However, there was a decrease in other capital expenditure and intermediate consumption, with interest payable also reducing by 4.8%.