Cyprus recorded a general government surplus of €594.3 million in January and February, equal to 1.5% of GDP, according to preliminary figures from the Statistical Service. The surplus is down from €663.4 million, or 1.8% of GDP, in the same period last year.
Revenue rose 0.9% to €2.71 billion. Income and wealth taxes increased by €32.7 million, while social contributions were up €17.6 million. Net VAT revenue climbed 3.9% to €580.7 million. Taxes on production and imports overall fell by €12.8 million. Revenue from services, interest and dividends also declined.
Expenditure increased 4.6% to €2.12 billion. Social benefits rose by €45.5 million and current transfers by €52.1 million. Compensation of employees and intermediate consumption posted smaller increases. Capital spending fell 8.4% to €119.5 million, mainly due to lower fixed‑capital investment.
By subsector, the central government posted a €387.1 million surplus, local authorities recorded a €13.7 million deficit and social security funds reported a €220.9 million surplus.
The Statistical Service noted that estimates were used for several local‑government entities due to incomplete data.