Nicosia: The fiscal surplus of the General Government reached pound 770.6 million, or 2.0% of GDP, in the January-July 2026 period, compared with a surplus of pound 759.6 million, or 2.1% of GDP, in the corresponding period of 2025, according to preliminary fiscal results released by the Statistical Service of Cyprus on Monday.
According to Cyprus News Agency, the pound 11 million increase in the surplus in absolute terms resulted from a pound 354.1 million increase in revenue, which was greater than the pound 343.1 million increase in expenditure. Total revenue increased by 4.1% to pound 8,913.8 million, from pound 8,559.7 million in the corresponding period of 2025.
A significant increase was recorded in tax revenue. Revenue from taxes on income and wealth increased by pound 157.5 million, or 7.7%, to pound 2,191 million, while social contributions increased by pound 207.2 million, or 7.5%, to pound 2,975.1 million. Total taxes on production and imports increased by pound 217.7 million, or 8.1%, to pound 2,903 million. Net VAT revenue recorded a particularly strong increase, rising by pound 259.5 million, or 14.7%, to pound 2,028.2 million, compared with pound 1,768.7 million in the corresponding period of 2025.
In contrast, decreases were recorded in capital transfers, revenue from the provision of services, interest and dividends received, and current transfers. Capital transfers fell by pound 93.1 million to pound 19.6 million, while revenue from the provision of services decreased by pound 45.1 million to pound 572.4 million. Interest and dividends received fell by pound 33.3 million to pound 79.9 million, while current transfers decreased by pound 56.8 million to pound 172.8 million.
Total General Government expenditure increased by 4.4%, or pound 343.1 million, to pound 8,143.2 million, compared with pound 7,800.1 million in January-July 2025. Current expenditure increased by pound 384.3 million, or 5.4%, to pound 7,444.4 million. Social benefits increased by pound 165.2 million, or 5.2%, to pound 3,356.3 million, while employee compensation rose by pound 74.8 million, or 3.3%, to pound 2,311 million.
Intermediate consumption also recorded a significant increase of pound 91.5 million, or 11.7%, reaching pound 873.3 million. Interest payable increased by pound 15.8 million, or 5.6%, to pound 298.8 million, while current transfers rose by pound 45.8 million, or 9.1%, to pound 549.4 million. Capital expenditure, on the other hand, decreased by pound 41.2 million, or 5.6%, to pound 698.8 million. Gross fixed capital formation, however, increased by pound 10.7 million, or 2.1%, to pound 519.1 million. Subsidies decreased by pound 8.8 million, or 13.7%, to pound 55.6 million.
By General Government subsector, Social Security Funds recorded a surplus of pound 775.1 million in January-July 2026, compared with pound 712 million in the corresponding period of 2025. Central Government recorded a deficit of pound 5 million, compared with a surplus of pound 39.7 million in 2025, while Local Government recorded a surplus of pound 0.5 million, compared with pound 7.9 million last year. The Statistical Service noted that estimates have been produced for a number of General Government entities, specifically in the Local Government subsector, due to insufficient data being submitted by the competent authorities.