FAMAGUSTA GAZETTE – Cyprus recorded a general government surplus of €557.6 million, or 1.6% of GDP, in the first half of 2025, according to preliminary fiscal results released by the Statistical Service of Cyprus (CYSTAT).
The figure marks a slight increase from the €550.7 million surplus posted during the same period in 2024.
Total revenue rose by 5.9% year-on-year to €7.12 billion, driven by gains in income and wealth taxes, social contributions, and property income.
Income tax revenue climbed 12% to €1.59 billion, while social contributions increased nearly 10% to €2.36 billion.
Net VAT revenue rose 4.8% to €1.59 billion. Revenue from the sale of goods and services remained stable, while current and capital transfers declined sharply.
Government expenditure grew by 6.3% to €6.56 billion, with notable increases in employee compensation, social benefits, and capital investment.
Social benefits rose 6.9% to €2.75 billion, and gross capital formation jumped 16.1% to €419.5 million. Interest payments increased nearly 10% to €250.9 million.
The surplus was largely attributed to strong performance by the Social Security Funds, which posted net lending of €612.7 million.
In contrast, the central and local government subsectors recorded deficits of €38.8 million and €16.3 million, respectively.