budget surplus — budget surplus — Cyprus recorded a general government fiscal surplus of €538.8 million in January 2026, equivalent to 1.5 per cent of gross domestic product, according to the Cyprus Statistical Service (Cystat).
- This surplus marks a slight decline from the €569.3 million surplus, or 1.6 per cent of GDP, achieved in January 2025.
- Total government revenue for January 2026 rose by €14.7 million, a 1.0 per cent increase, totalling €1.55 billion compared to €1.53 billion in January 2025.
This surplus marks a slight decline from the €569.3 million surplus, or 1.6 per cent of GDP, achieved in January 2025.
Budget surplus: Revenue Increases Despite Tax Declines
Total government revenue for January 2026 rose by €14.7 million, a 1.0 per cent increase, totalling €1.55 billion compared to €1.53 billion in January 2025.
The growth was primarily driven by a significant rise in taxes on income and wealth, which surged by €71.2 million, or 12.2 per cent, reaching €657.0 million against €585.8 million from the previous year.
However, taxes on production and imports saw a decline of €24.0 million, falling to €363.4 million from €387.4 million in January 2025. Despite this, net revenue from value-added tax increased by €9.2 million, reflecting a growth of 3.7 per cent, totalling €258.9 million compared to €249.7 million a year earlier.
Shifts in Government Spending
On the expenditure side, total government spending rose by €45.2 million, marking a 4.7 per cent increase to €1.01 billion. This rise was partly attributed to higher intermediate consumption, which increased by €10.2 million, representing a 13.9 per cent growth.
Social benefits also saw a notable rise, increasing by €19.3 million, or 4.5 per cent, reaching €450.0 million compared to €430.7 million in January 2025. Additionally, current transfers increased significantly by €21.7 million, or 30.2 per cent, totalling €93.6 million compared to €71.9 million during the same month last year.
Variations in Other Revenue Streams
While some revenue streams grew, others faced declines. Social contributions fell by €7.8 million, or 1.8 per cent, decreasing to €423.4 million from €431.2 million in January 2025. Property income also dropped by €2.2 million, or 31.0 per cent, falling to €4.9 million compared to €7.1 million a year earlier.
The data revealed that revenue from the sale of goods and services declined by €15.9 million, a 15.7 per cent decrease, totalling €85.5 million from €101.4 million in the corresponding period last year.
Capital Account Highlights
In terms of capital account, there was a modest increase of €4.2 million, or 12.7 per cent, reaching €37.4 million compared to €33.2 million in January 2025. Within this, gross capital formation rose slightly by €0.6 million, or 2.3 per cent, totalling €27.0 million.
Employment and Subsidy Trends
Some categories of expenditure saw declines as well. Compensation of employees, including pensions of civil servants, fell by €1.4 million, or 0.4 per cent, reaching €313.8 million compared to €315.2 million in January 2025. Interest payable also saw a slight decline of €0.2 million, totalling €34.3 million.
Subsidies significantly decreased, falling by €8.6 million to just €0.1 million compared to €8.7 million in January 2025. Cystat noted that some fiscal data for general government entities relied on estimates due to insufficient submissions from relevant authorities.
