Cyprus government posts €573m surplus in first quarter of 2026
The Cyprus general government recorded a fiscal surplus of €573.3 million during January-March 2026, according to a report based on preliminary data by the Cyprus Statistical Service (Cystat).
The surplus corresponded to 1.5 per cent of GDP, compared with a surplus of €600.60m, which was equivalent to 1.6 per cent of GDP, during the same period of 2025.
Total revenue increased by €194.00 million, or 5.4 per cent, reaching €3.81 billion, up from €3.61 billion in the first quarter of 2025.
The statistical service also reported that revenue from taxes on income and wealth rose by €107.80m, or 10.9 per cent, amounting to €1.09bn compared with €985.90m a year earlier.
Moreover, social contributions increased by €86.00m, or 7.3 per cent, reaching €1.26bn from €1.18bn in the corresponding period of 2025.
Taxes on production and imports grew by €31.50m, or 2.9 per cent, totalling €1.12bn compared with €1.09bn in 2025.
The report also showed that net VAT revenue rose by €34.60m, or 4.8 per cent, reaching €758.80m from €724.20m in the previous year.
Furthermore, capital transfers increased marginally by €0.60m, or 13.6 per cent, reaching €5.00m compared with €4.40m in 2025.
On the other hand, property income declined by €3.30m, or 17.5 per cent, falling to €15.60m from €18.90m a year earlier.
Revenue from the sale of goods and services decreased by €19.00m, or 7.2 per cent, reaching €243.80m compared with €262.80m in 2025.
The statistical service also reported that current transfers declined by €9.60m, or 14.0 per cent, totalling €58.80m compared with €68.40m in the previous year.
Total expenditure rose by €221.30m, or 7.3 per cent, to €3.23bn, compared with €3.01bn in the first quarter of 2025.
The report also showed that intermediate consumption increased by €25.60m, or 9.2 per cent, reaching €303.70m from €278.10m in 2025.
Meanwhile, compensation of employees, including social contributions and pensions of civil servants, rose by €23.00m, or 2.4 per cent, amounting to €974.80m compared with €971.80m in the previous year.
Social benefits increased by €82.30m, or 6.4 per cent, reaching €1.36bn from €1.28bn in 2025.
What is more, interest payments recorded a sharp increase of €29.90m, or 41.1 per cent, rising to €102.70m compared with €72.80m in the corresponding period of 2025.
The statistical service further stated that current transfers rose significantly by €58.80m, or 31.6 per cent, reaching €245.00m from €186.20m a year earlier.
The capital account increased by €5.60m, or 2.5 per cent, totalling €229.10m compared with €223.50m in 2025.
In addition, gross capital formation rose by €7.40m, or 4.4 per cent, reaching €176.60m from €169.20m in the previous year.
Other capital expenditure declined by €1.80m, or 3.3 per cent, falling to €52.50m compared with €54.30m in 2025.
Finally, subsidies decreased by €3.90m, or 19.5 per cent, amounting to €16.10m compared with €20.00m in the same period of the previous year.