Insider Economy Cyprus general government surplus 4.3% of GDP in first eight months of...

Cyprus general government surplus 4.3% of GDP in first eight months of 2019

Cyprus’ general government surplus was at 4.3% of GDP in the first eight months of 2019, mainly due to the increase in social contributions and revenue from taxes, according to the preliminary General Government fiscal results for the period of January-August 2019 released Friday by the Statistical Service of Cyprus.

The surplus rose to €924.2m (4.3% of GDP), as compared to a surplus of €732.6m for the corresponding period of 2018 (3.5% of GDP).

EXPENDITURE

Total expenditure for the first eight months of 2019 recorded an increase of €436.7m (+9.7%) as compared to the same period of 2018 and reached €4,949.8 m (€4,513.1 m in 2018).

Social benefits recorded the biggest increase (€190.3 m or 11.0%) and reached €1,917.1 m in January-August 2019 as compared to €1,726.8 m in January-August 2018.

The compensation of employees (including imputed social contributions and pensions of civil servants) also recorded a considerable increase (€149.2 m or 10.1%) and reached €1,630.7 m (as compared to €1,481.5 m in January-August 2018).

Intermediate consumption increased by €90.0 m (+20.9%) and reached €521.5 m for the first eight months of 2019 as compared to €431.5 m in the corresponding period of last year. Current transfers recorded an increased expenditure (by €64.7 m or 22.2%) and reached €356.5 m (as compared to €291.8 m in 2018).

Payable interest increased by €31.2 m(+9.6%) during the period of January-August 2019 to reach €355.3 m as compared to €324.1mn during the same period of 2018.

A smaller increase was recorded by capital transfers and subsidies, which increased by €6.1 m(+19.9%) and €1.6 m (+5.9%) respectively to reach €36.7 m and €28.5 m  (as opposed to €30.6 m and €26.9 m correspondingly in January-August 2018).

A decrease was recorded for investment, which was reduced by €96.4 m(-48.2%) and was confined to €103.5 m as opposed to €199.9 m that were recorded during the period of January-August 2018. Excluding land annexations, that are included in investment, a decrease of €94.2 m is observed (€79.0m in 2019 as compared to €173.2 m in 2018, that is a decrease of 54.4%).

REVENUE

Total revenue increased by 12%, that is €628.3 m, to reach €5,874.0 m during the period of January-August 2019 (€5,245.7 m in the corresponding period of 2018).

Social contributions collected by the State during this period increased significantly (by €360.1 m, that is +29.7%) to total €1,571.8 m (€1,211.7 m in 2018).

The revenue from taxes on income and wealth also increased significantly (by €122.4 m, that is +9.6%) and reached €1,391.0 m as opposed to €1,268.6 m in the corresponding period of 2018. Capital transfers received by the State reached €155.1 m , an increase of €89.9 m, which corresponds to +137.9%, as opposed to the €65.2 m received during the corresponding period of 2018.

Revenue received from taxes on production and imports recorded an increase of €60.2 m(+2.8%) to reach €2,174.9 m, as compared to €2,114.7 m received in 2018. However, net VAT revenue (that is included in this category) registered an increase of €84.2 m(+6.4%) and reached €1,389.9 m in 2019, as compared to €1,305.7 m in 2018.

Property income recorded a €21.0 m increase (+29.2%) to reach €92.9 m during the period of January-August 2019 (as compared to €71.9 m in January-August 2018).

The remaining two categories of revenue recorded a decrease. Current transfers were reduced by €17.0 m (-12.8%) to total €116.3 m during the said period (€133.3 m in 2018), while revenue for the sale of goods and services were reduced by 2.2% (or €8.3 m) to total €372.0 m in 2019 as compared to €380.3 m in January-August 2018.

(Cyprus News Agency)

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