Politis

State Fiscal Surplus at €1.2 Billion - Revenue Up 5.8%, Expenditure Up 7.8%

Published January 8, 2026, 11:22
State Fiscal Surplus at €1.2 Billion - Revenue Up 5.8%, Expenditure Up 7.8%

Cyprus's fiscal surplus decreased in the first eleven months of 2025, reaching €1.2 billion (3.2% of GDP) compared to €1.3 billion (3.8% of GDP) in the same period of 2024. The decrease is due to the faster increase in expenditure compared to the rise in revenue. Total revenue increased by 5.8% (€748.3 million) to €13.6 billion, while social contributions increased by 8.1% (€325.3 million) to €4.3 billion. Revenue from income and wealth taxes also increased (5.4%) as did collected interest and dividends (37.2%). Conversely, total expenditure increased by 7.8% (€903.3 million) to €12.4 billion. The largest increase was observed in social benefits (7.1%) and staff compensation (6.3%). Investments in fixed capital (14.7%) and other capital transfers also increased. It is worth noting that the amendment of the clause regarding the 'Cronus' deposit is expected to facilitate the transfer of Cypriot natural gas to Egypt, while there is optimism for resolving the issues concerning Block 12 and starting production from the 'Aphrodite' deposit.