Cyprus’ government posted a €1.119 billion surplus for the January–October 2025 period, equivalent to 3.1 per cent of GDP, according to preliminary figures from the Statistical Service (Cystat).

This compares with a €1.3209bn surplus, or 3.8 per cent of GDP, during the same period of 2024.

Revenue rises by 5.6 per cent

Total government revenue reached €12.33bn, an increase of €658.5 million, or 5.6 per cent, compared with the €11.67bn recorded a year earlier.

Moreover, revenue from income and wealth taxes grew by €154.6m, a rise of 5.3 per cent, reaching €3.05bn, while social contributions also increased, rising by €296.3m, or 8.2 per cent, to €3.91bn.

Property income posted a notable gain of 40.1 per cent, increasing by €38.2m to €133.5m.

At the same time, taxes on production and imports recorded a modest rise of 0.2 per cent, amounting to €3.95bn.

Within this category, however, net VAT revenue declined by €24.8m, a drop of 0.9 per cent, to €2.65bn.

Furthermore, revenue from the sale of goods and services increased by €137.4m, or 18.7 per cent, to €871.3m, while capital transfers rose by €46.2m, an increase of 64.9 per cent, reaching €117.4m.

In contrast, current transfers decreased by €21.9m, falling by 6.7 per cent to €304.6m.

Expenditure increases across key categories

Total expenditure for January–October 2025 amounted to €11.21bn, up €860.4m, or 8.3 per cent, from the €10.35bn recorded in the same period of 2024.

In terms of key components, compensation of employees rose by €201m, an increase of 6.7 per cent, reaching €3.20bn, while social benefits increased by €299.7m, or 7.1 per cent, totalling €4.53bn.

Intermediate consumption also grew, rising by €72.5m, or 6.6 per cent, to €1.18bn.

Interest payments remained broadly stable at €358.7m.

By contrast, subsidies decreased by €10.7m, a drop of 8.3 per cent, to €118.5m, while current transfers fell by €10.4m, down 1.6 per cent, to €658.4m.

Meanwhile, the capital account recorded a substantial increase, rising by €307.8m, or 36 per cent, to €1.16bn. This includes €822.3m in gross capital formation, up by 12.3 per cent, and €341.5m in other capital expenditure, which more than doubled compared with 2024.

Cystat noted that, for several entities within the general government, particularly the local government subsector, estimates were used due to insufficient data submission by the relevant authorities.