budget surplus — budget surplus — Cyprus has recorded a significant fiscal surplus of €1.44 billion in 2024, equivalent to 4.1 per cent of its GDP, as confirmed by audited data under the European Commission’s Excessive Deficit Procedure. This surplus reflects the ongoing improvement in the nation’s financial health, as reported by the state statistical service, Cystat.
According to the latest figures released on Tuesday, Cyprus’ public debt stood at €21.82 billion, representing 62.8 per cent of GDP. This is a notable achievement for the government, showcasing a robust fiscal position compared to previous years.
Revenue streams have seen remarkable growth, with total income rising by €1.01 billion, or 7.4 per cent year-on-year, bringing the total revenue to €14.75 billion, up from €13.74 billion in 2023. A significant driver of this increase has been the rise in taxes on production and imports, which surged by €227.8 million, or 5.1 per cent, totalling €4.68 billion.
Within this sector, net VAT revenue proved particularly strong, climbing by €190.8 million, or 6.4 per cent, to reach €3.17 billion. Additionally, social contributions rose by €139.5 million, or 3.2 per cent, amounting to €4.52 billion. Taxes on income and wealth saw a notable increase, surging by €539.8 million, or 16.5 per cent, to total €3.80 billion.
Other revenue sources also contributed positively, with revenue from the sale of goods and services increasing by €52.3 million, or 6.2 per cent, reaching €889.8 million. Capital transfers climbed by €40.2 million, or 13.5 per cent, to total €336.9 million, while other current transfers rose by €27.4 million, or 7.5 per cent, reaching €393.2 million. However, property income receivable fell by €14.9 million, or 10.8 per cent, to €122.9 million, compared to €137.8 million in 2023.
On the expenditure side, total spending increased slightly by €127.3 million, or 1.0 per cent, totalling €13.31 billion compared to €13.18 billion in 2023. The compensation of employees, which includes imputed social contributions and pensions for civil servants, rose by €257.8 million, or 7.1 per cent, to €3.88 billion. Social transfers also saw a significant boost, growing by €365.1 million, or 7.4 per cent, to reach €5.30 billion.
Intermediate consumption rose by €110.1 million, or 8.1 per cent, to amount to €1.48 billion, while property income payable increased by €36.7 million, or 9.2 per cent, totalling €434.8 million. Subsidies rose slightly by €0.7 million, or 0.4 per cent, to €171.4 million. In contrast, other current expenditure experienced a decline of €271.1 million, or 24.3 per cent, to €842.4 million, down from €1.11 billion in 2023.
The trend continued with total capital expenditure decreasing by €372.0 million, or 23.6 per cent, amounting to €1.21 billion in 2024 compared to €1.58 billion a year earlier. This reduction included €966.1 million in gross capital formation and €239.1 million in other capital expenditure, down from €1.02 billion and €559.1 million, respectively, in 2023. Such fiscal discipline highlights the government’s focus on maintaining a sustainable budget.
