Cyprus’ General Government recorded a fiscal surplus of pound 1.5891 billion, or 4.1% of GDP, in the January-August 2026 period, compared with pound 1.2693 billion, or 3.5% of GDP, in the corresponding period of 2025, according to preliminary fiscal results released by the Statistical Service on Thursday.
The surplus increased by pound 319.8 million year-on-year, as total revenue grew at a faster pace than expenditure.
Total revenue increased by pound 615.8 million, or 6.0%, to pound 10.842 billion, from pound 10.2262 billion in the corresponding period of 2025.
A significant increase was recorded in revenue from taxes on income and wealth, which rose by pound 382.4 million, or 14.2%, to pound 3.0801 billion, from pound 2.6977 billion.
Social contributions increased by pound 218.8 million, or 7.0%, to pound 3.3629 billion, while total taxes on production and imports rose by pound 252.9 million, or 8.2%, to pound 3.3416 billion.
Net VAT revenue increased particularly strongly, rising by pound 300.5 million, or 14.7%, to pound 2.3453 billion, from pound 2.0448 billion in the first eight months of 2025.
By contrast, capital transfers received fell by pound 101.7 million to pound 89.9 million, while revenue from the provision of services declined by pound 14.0 million to pound 665.0 million. Interest and dividends received fell by pound 37.7 million to pound 85.2 million, while current transfers decreased by pound 84.9 million to pound 217.3 million.
Expenditure up 3.3%
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Total General Government expenditure increased by pound 296.0 million, or 3.3%, to pound 9.2529 billion, from pound 8.957 billion in the corresponding period of 2025.
Social benefits increased by pound 188.9 million, or 5.2%, to pound 3.8037 billion, while compensation of employees rose by pound 42.2 million, or 1.6%, to pound 2.6357 billion.
Intermediate consumption increased by pound 94.7 million, or 10.3%, to pound 1.0139 billion, while interest paid rose by pound 6.4 million, or 2.2%, to pound 298.5 million.
Capital expenditure, however, decreased by pound 45.5 million, or 5.3%, to pound 819.8 million. Gross fixed capital investment fell by pound 11.3 million, or 1.8%, to pound 603.1 million, while other capital transfers decreased by pound 34.1 million, or 13.6%, to pound 216.7 million.
By General Government subsector, the Central Government surplus increased to pound 735.1 million from pound 482.1 million in the first eight months of 2025. Local Government recorded a surplus of pound 3.0 million, compared with a deficit of pound 23.6 million, while Social Security Funds recorded a surplus of pound 851.0 million, compared with pound 810.8 million in 2025.
The Statistical Service noted that estimates had been produced for a number of General Government entities, particularly within the Local Government subsector, due to insufficient data submissions by the relevant authorities.