Cyprus recorded a general government surplus of €653.6 million in the third quarter of 2025, according to the latest preliminary fiscal results from the state statistical service, Cystat. This figure reflects a decrease from the €871 million surplus achieved during the same period in 2024.
The results, which cover the months from July to September 2025, highlight a modest rise in total government revenue, which climbed by €104.2 million, or 2.6%, reaching €4.10 billion. This is an increase from €3.99 billion reported in the third quarter of the previous year.
Surplus: Key Revenue Contributors
Social contributions saw a notable increase, rising by €62.5 million, or 5.7%, to total €1.15 billion. This is up from €1.09 billion in the third quarter of 2024. Revenue generated from taxes on income and wealth also showed a slight uptick, increasing by €10.9 million, or 0.8%, to €1.30 billion, compared to €1.29 billion in the same quarter last year.
Taxes on production and imports increased marginally by €7.1 million, amounting to €1.26 billion. Within this category, net VAT revenue rose significantly by €40.2 million, reflecting a 4.8% increase to €886.4 million, compared to €846.2 million in the corresponding quarter of 2024.
Other revenue streams also experienced growth. Property income receivable increased by €3 million, or 13.5%, reaching €25.3 million, while capital transfers rose by €6 million to €10.8 million. Revenue from the sale of goods and services saw a 6.1% increase, totalling €260.9 million, up from €245.8 million in the third quarter of 2024. However, other current transfers declined slightly by €0.4 million, a decrease of 0.5%, to €87.2 million.
Expenditure Trends
On the expenditure side, total government spending rose significantly by €321.5 million, marking a 10.3% increase to €3.45 billion in the third quarter of 2025, compared to €3.12 billion in the same period of 2024.
Social transfers contributed to this rise, increasing by €97.8 million, or 7.9%, to €1.33 billion. Compensation for employees also saw a rise of €50.5 million, or 5.6%, reaching €955.6 million, which includes imputed social contributions and pensions for civil servants.
Intermediate consumption experienced a slight increase of €4.5 million, representing a 1.2% rise to €382 million. The capital account reported a remarkable increase of €223.7 million, equivalent to an 84.2% rise, reaching €489.3 million. This consisted of €321 million in capital formation and €168.3 million in capital transfers.
In contrast, property income payable fell by €26.1 million, a drop of 25.7%, to €75.3 million, and other current expenditure decreased by €16.1 million, or 8.6%, to €171.2 million. Subsidies also saw a decline of €12.6 million, a 25.3% decrease, totalling €37.3 million, down from €49.9 million in the same quarter of 2024.
