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Cyprus General Government Surplus Soars in Q1

economy government surplus

Cyprus’s fiscal performance in Q1 of 2024 has been robust, with a general government surplus of €600 million, a significant 58% increase from the previous year. Revenue increased by 13.5% to €3.28 billion, driven by growth in taxes on production, imports, and social contributions, while expenditure rose by 6.7% to €2.68 billion, with a notable decrease in capital account spending.

What is the fiscal performance of Cyprus in Q1 of 2024?

In Q1 of 2024, Cyprus reported a general government surplus of €600 million, a 58% increase from the previous year. Revenue rose by 13.5% to €3.28 billion, with significant growth in taxes on production, imports, and social contributions. Expenditure increased by 6.7% to €2.68 billion, with a noted decrease in capital account spending.

Robust Financial Performance

Cyprus has kicked off the year with a strong fiscal performance, showcasing a healthy economic trend. In the first quarter of 2024, the general government has recorded a surplus of a striking €600 million. This figure is not just a mere improvement but a significant leap—a 58 percent increase from the first quarter of the previous year. These numbers were released by the country’s statistical service, painting a picture of an economy where revenue growth is outstripping expenditure.

The details reveal more good news. For the January-March period of 2024, the revenue ascended by €389.9 million, a considerable 13.5 percent increase. This has pushed the total revenue to €3.28 billion. To put this into perspective, the corresponding period in 2023 saw a figure of €2.89 billion. Evidently, the island nation is seeing its coffers swell, which bodes well for its economic resilience.

Revenue Streams Flourishing

Breaking down the revenue streams, there’s a notable uptick in various sectors. Taxes on production and imports have seen an increase by €65.8 million, a 6.4 percent rise, culminating in €1.09 billion. This is a positive indicator of the country’s production and import sectors’ vitality. Another significant contributor to the revenue surge is net VAT, which has jumped by €69.8 million, a 10.2 percent uplift. Social contributions, too, have climbed by €108.3 million, indicating a 12.5 percent growth—a sign of a strengthening social safety net.

The growth story continues with income and wealth taxes. These have surged by €135.7 million, a robust 17.4 percent rise. Furthermore, revenue from the provision of goods and services has soared by an impressive 46.8 percent, an increase of €69.6 million. Even smaller categories like capital transfers and property income receivable have seen green shoots of growth.

Expenditure and Investments

On the other side of the ledger, total expenditures have also increased, though at a slower pace than revenue. The rise is marked at 6.7 percent, translating to an additional €168.0 million, bringing the total to €2.68 billion. A breakdown of these expenditures points to a €70.6 million increase in social benefits and a €113.9 million hike in compensation for employees. Such increases are indicative of the government’s commitment to its social responsibilities and investment in its human resources.

Interestingly, while most expenditure categories have expanded, the capital account has seen a reduction of €61.2 million. This drop, amounting to a 34.0 percent decrease, has brought the total to €118.6 million for the current period. It includes €91.9 million in capital investments and a smaller segment in capital transfers. This suggests a more cautious approach to capital expenditure, possibly as a strategic move to balance out the overall budget.

These financial dynamics highlight Cyprus’s economic health and its government’s adept management of the fiscal levers. With such a strong start to the year, the country’s financial foundations seem well-set to support future growth and navigate the challenges that may lie ahead.

What is the fiscal performance of Cyprus in Q1 of 2024?

In Q1 of 2024, Cyprus reported a general government surplus of €600 million, a 58% increase from the previous year. Revenue rose by 13.5% to €3.28 billion, with significant growth in taxes on production, imports, and social contributions. Expenditure increased by 6.7% to €2.68 billion, with a noted decrease in capital account spending.

How has Cyprus’s revenue streams performed in Q1 of 2024?

Cyprus’s revenue streams have flourished in Q1 of 2024. Taxes on production and imports increased by €65.8 million, net VAT jumped by €69.8 million, social contributions climbed by €108.3 million, income and wealth taxes surged by €135.7 million, and revenue from the provision of goods and services increased by €69.6 million.

What are the key areas of expenditure and investments for Cyprus in Q1 of 2024?

In Q1 of 2024, Cyprus saw increases in total expenditures, with social benefits rising by €70.6 million and compensation for employees increasing by €113.9 million. However, there was a decrease in the capital account spending by €61.2 million, indicating a more cautious approach to capital expenditure by the government.

What does the strong fiscal performance of Cyprus in Q1 of 2024 indicate?

The robust fiscal performance of Cyprus in Q1 of 2024, with a general government surplus of €600 million, signifies a healthy economic trend. The significant increase in revenue, driven by various sectors, and the strategic management of expenditure and investments point towards economic resilience and potential future growth for the country.

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