Cyprus’ general government recorded a surplus of €867.5 million during the third quarter of 2024, according to preliminary data released on Friday by the state’s statistical service.

This figure remains close to the €872.8 million surplus recorded during the same period last year, despite increased government spending outpacing revenue growth.

During the period from July to September 2024, total government revenue rose by €255.7 million, an increase of 6.9 per cent, reaching €3.97 billion.

The rise was primarily attributed to an increase in social contributions, which surged by 13.2 per cent to €1.09 billion, and higher income and wealth taxes, which grew by 13.9 per cent to €1.29 billion.

Revenue from the provision of goods and services saw a significant jump of 30.7 per cent, reaching €284.9 million, while property income rose by 14.3 per cent to €30.8 million.

In contrast, taxes on production and imports experienced a decline, falling by 2.1 per cent to €1.22 billion.

Within this category, net VAT receipts decreased by 1.5 per cent, reaching €834 million.

Current transfers also dropped by 30.9 per cent to €59.7 million, and capital transfers plummeted by 97 per cent to just €1.4 million.

On the expenditure side, total government spending increased by €261 million, representing a 9.2 per cent rise, reaching €3.1 billion.

Social benefits were a major driver of this growth, rising by 8.8 per cent to €1.24 billion.

Employee compensation, which includes salaries, pensions, and imputed social contributions, grew by 6.5 per cent to €892.6 million.

Intermediate consumption also increased sharply, by 25.3 per cent, totalling €379.1 million, while subsidies rose by 53.2 per cent to €44.9 million.

Meanwhile, capital expenditure fell by 5.5 per cent to €268.3 million, comprising €225.3 million in capital investments and €43 million in capital transfers.

Property income payable decreased by 19.6 per cent to €94.1 million.

Finally, the statistical service noted that estimates had to be produced for the local government sector due to insufficient data submissions by the relevant authorities.