In recent findings presented within the Excessive Deficit Procedure framework of the European Commission, Cyprus posted a fiscal surplus of €676.3 million in 2022. This surplus, amounting to 2.4% of the country's GDP, is a significant positive economic sign, even as the fiscal debt stood at €23,767.3 million, representing 85.6% of the GDP.

Revenue in 2022 saw a remarkable growth, increasing by 14.8% to €11.456.4 million from 2021’s €9.983.5 million. The growth was primarily driven by a rise in taxes on production and imports, which climbed by €645.4 million to €4.033.5 million. Within this category, net VAT revenue surged by 24% to €2.705.7 million. Additionally, social contributions rose by 13.7% to €3.122.0 million, while taxes on income and wealth grew by 17.5% to €2.924.2 million. Revenue from the sale of goods and services also increased by 10.3% to €806.1 million. On the downside, capital transfers declined by 33.4%, settling at €201.6 million.

Overall, 2022 saw a 3.2% rise in expenditure, totaling €10.780.1 million. There were significant increases across various sectors. Intermediate consumption went up by 18.9% to €1.240.6 million. Compensation of employees, including benefits and pensions, grew by 6.1% to €3.179.2 million. Social transfers showed an increase of 6.7% to reach €4.211.7 million, and capital expenditure climbed by 14.0% to €950.5 million. However, there was a notable drop in subsidies by 76.2% to €139.3 million.

The Statistical Service of Cyprus reported a deficit of €218.4 million for Q2 2023, indicating progress from the €306.4 million deficit seen in Q2 2022.

The second quarter of 2023 saw a revenue increase of 14.0% to €2,665.6 million. There were notable rises in taxes on production and imports, up by 13.8% to €984.5 million. Within this, net VAT revenue experienced an 18.1% increase to €643.4 million. Additionally, social contributions climbed by 15.3% to €860.4 million and taxes on income and wealth grew by 15.6% to €478.3 million. Conversely, there were decreases in capital transfers by 12.8% to €41.7 million.

In terms of expenditure for Q2 2023, there was a 9.0% rise, amounting to €2,884.0 million. Social transfers grew by 7.6% to €1,198.0 million, and the compensation of employees went up by 13.0% to €837.1 million. Subsidies also showed a significant increase, totaling €61.5 million. However, intermediate consumption dipped by 9.0% to €278.3 million.