The Cyprus Statistical Service (CyStat) released preliminary fiscal results on Thursday, indicating a notable surplus of €918.9 million, or 3.1% of GDP, for the period of January to October 2023. This marks an increase from the surplus of €691.5 million, or 2.5% of GDP, recorded during the same period in 2022.

From January to October 2023, total revenue witnessed an 11.8% increase, reaching €10,033 million, up from €8,973.2 million in the corresponding period of 2022.

A breakdown of the revenue sources shows that taxes on production and imports rose by 11.7%, totaling €3,697.2 million, compared to €3,309.8 million in 2022. This includes a 12% increase in net VAT revenue to €2,497.2 million, up from €2,230.3 million in 2022.

Income and wealth tax revenue grew by 16.3%, amounting to €2,467.5 million, compared to €2,121.4 million in the previous year. Social contributions saw a 15% increase to €2,859.8 million, up from €2,487.3 million in 2022.

There were also increases in current transfers (25.1%) and revenue from the sale of goods and services, albeit marginally by €0.1 million. However, property income saw a decrease of 21.6%, dropping to €82.4 million from €105.1 million in 2022. Additionally, capital transfers declined by 43.6% to €86.6 million, from €153.6 million.

Total expenditure for January-October 2023 increased by 10.1% to €9,114.1 million, compared to €8,281.7 million in the same period of 2022.

Social benefits expenses rose by 8.6% to €3,621.9 million. Compensation of employees, including imputed social contributions and pensions of civil servants, increased by 12.3% to €2,749.8 million. Subsidies and current transfers saw increases of 64.8% and 25.9%, respectively.

The capital account grew by 17.9% to €803.2 million, primarily due to a 24.5% increase in gross capital formation, which amounted to €660.8 million. However, other capital expenditure decreased by 5.3% to €142.4 million.

In contrast, intermediate consumption and interest payable saw declines of 4.4% and 1%, respectively.