Insights from the Fiscal Report of the Republic of Cyprus for 2023
The fiscal landscape of the Republic of Cyprus has been meticulously detailed in the latest report presented to the House of Representatives. A significant portion of state expenditures, totaling €3.20 billion, is allocated to personnel wages, pensions, and bonuses. This figure reflects the government’s commitment to its workforce, despite the number of personnel fluctuating between a peak in 2012 and a trough in 2015.
Another major category of expenditure is social benefits, with €1.80 billion earmarked for various programs. Notably, this includes a substantial €700 million contribution to the General Health Plan, underscoring the state’s dedication to healthcare. The report also highlights that social benefits encompass costs such as medical care and emergency grants, with specific figures indicating a slight shift in allocations compared to the previous year.
Transfers constitute another significant outlay at €1.36 billion, supporting a range of entities from local governments to international organizations. These transfers are crucial for maintaining the operational efficacy of various sectors within the country.
Delving into specifics, the Ministry of Education, Culture, Sports, and Youth commands the lion’s share of wage expenditures at 36%, primarily due to educator salaries. The Ministries of Health and Justice and Public Order follow closely, with significant allocations for health personnel and police wages, respectively.
The state’s financial obligations have also been outlined, with total loans excluding intra-governmental loans reaching €22.18 billion as of December 31, 2023. The methods of state financing are predominantly through European Medium-Term Notes and loans from the European Stability Mechanism.
In terms of revenue versus expenditure, the approved expenditures for 2023 stood at €12 billion, with actual expenditures slightly lower at €10.92 billion. Meanwhile, total revenue exceeded projections, coming in at €9.94 billion. Despite this positive revenue performance, the state budget deficit increased by 9% to €0.98 billion.
The fiscal report serves not only as a record of financial activity but also as a comparative tool for understanding the dynamics of