The fiscal surplus of the General Government reached €770.6 million, or 2.0% of GDP, in the January-July 2026 period, compared with a surplus of €759.6 million, or 2.1% of GDP, in the corresponding period of 2025, according to preliminary fiscal results released by CySTAT.
The €11 million increase in the surplus in absolute terms resulted from a €354.1 million increase in revenue, which was greater than the €343.1 million increase in expenditure.
Total revenue increased by 4.1% to €8,913.8 million, from €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 €157.5 million, or 7.7%, to €2,191 million, while social contributions increased by €207.2 million, or 7.5%, to €2,975.1 million.
Total taxes on production and imports increased by €217.7 million, or 8.1%, to €2,903 million. Net VAT revenue recorded a particularly strong increase, rising by €259.5 million, or 14.7%, to €2,028.2 million, compared with €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 €93.1 million to €19.6 million, while revenue from the provision of services decreased by €45.1 million to €572.4 million. Interest and dividends received fell by €33.3 million to €79.9 million, while current transfers decreased by €56.8 million to €172.8 million.
Expenditure increases
Total General Government expenditure increased by 4.4%, or €343.1 million, to €8,143.2 million, compared with €7,800.1 million in January-July 2025.
Current expenditure increased by €384.3 million, or 5.4%, to €7,444.4 million.
Social benefits increased by €165.2 million, or 5.2%, to €3,356.3 million, while employee compensation rose by €74.8 million, or 3.3%, to €2,311 million.
Intermediate consumption also recorded a significant increase of €91.5 million, or 11.7%, reaching €873.3 million.
Interest payable increased by €15.8 million, or 5.6%, to €298.8 million, while current transfers rose by €45.8 million, or 9.1%, to €549.4 million.
Capital expenditure, on the other hand, decreased by €41.2 million, or 5.6%, to €698.8 million. Gross fixed capital formation, however, increased by €10.7 million, or 2.1%, to €519.1 million.
Subsidies decreased by €8.8 million, or 13.7%, to €55.6 million.
By General Government subsector, Social Security Funds recorded a surplus of €775.1 million in January-July 2026, compared with €712 million in the corresponding period of 2025. Central Government recorded a deficit of €5 million, compared with a surplus of €39.7 million in 2025, while Local Government recorded a surplus of €0.5 million, compared with €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.
(Source: CNA)
