InsiderEconomyGeneral Government’s deficit reaches €1.05 b in 2018

General Government’s deficit reaches €1.05 b in 2018

The preliminary General Government fiscal results indicate a deficit of €1.05b  (-5,1% of GDP) for 2018, as compared to a surplus of €344.2 m for 2017 (1.8% of GDP).

The results  are prepared by the Statistical Service of Cyprus (CYSTAT) include the fiscal burden of €1.662b, that was the result of the sale of the Cyprus Cooperative Bank Ltd (CCB) to the Hellenic Bank.

Excluding the fiscal burden of CCB, the fiscal balance would register a surplus of €611.1 m (+2,9% of GDP).

According to figures published today by Statistical Service, total expenditure for 2018, including the fiscal burden of CCB, recorded an increase of €1.9589 b (+26b9%) as compared to 2017 and reached €9.2531 b (€7.294,2 b in 2017).

Capital expenditure recorded an increase of €1.6572 b and reached €1.7476 b (€90.4 m in 2017).

Intermediate consumption increased by €105.3 m (+14.8%) to reach €814.9 m in comparison to €709.6 m during the corresponding period of the previous year, while the compensation of employees (including imputed social contributions and pensions of civil servants) increased by €101.9 m (+4.3%) to reach €2.4563 b (€2.3544 b in 2017).

Social benefits registered an increase of €89.0 m (+3.4%) to reach €2.7088 b (as opposed to €2.6198 b in 2017), and payable interest also increased by €12.5 m to reach €515.1 m as compared to €502.6 m which was the interest paid in 2017.

Current transfers increased by €10.4 m (+2.2%) to reach a total of €474.0 m in 2018, as opposed to a corresponding expenditure of €463.6 m in 2017. Subsidies were also increased by €4.8 m (8.7%) and reached €59.9 m (as compared to €55,1 mn in 2017).

Capital investment is the only expenditure category that recorded a decrease of €22.2 m (-4.5%) to record an amount of €476.5 m in 2018 as compared to €498.7 m in 2017. Excluding land annexations, that are included in capital investment, this expenditure is decreased by €54.0 m, or 12.7% (€371.2 m in 2018 as compared to €425.2 m in 2017).

Total revenue increased by 7.4% that corresponds to an increase of €563.8 m, to total €82022 b in 2018 (€76384 b in 2017).

Most of the revenue categories exhibited an increase in 2018. Specifically, taxes on production and imports registered a 7.9% increase from 2017, that is an increase of €241.3 m (€3.2976 b in 2018 as opposed to €3.0563 b in 2017), of which net VAT revenue increased by 12.3%, which corresponds to €228.1 m, and reached a total of €2.079,5 m (as opposed to €1.8514 b in 2017).

Social contributions collected during 2018 increased by 7.8% (or €133.2 m) and reached €1.8428 b (as compared to €1.7096 b in 2017). Revenue from taxes on income and wealth increased by €90.5 m or 4.9% and reached €1.9259 b in 2018 in comparison to €1.8354 b in 2017, while capital transfers received by the State were increased by €78.0 m to reach €167.2 m (€89.2 m in 2017).

The revenue from the sale of goods and services increased by €51.8 m  (or 8.9%) and totalled €633.0 m, while the smallest increase was recorded by current transfers received that reached €229.1 m in 2018 (€218.9 in 2017).

The only revenue category that registered a decrease was that of property income, which decreased by €31.9 m and were confined to €115.9 m in 2018 (as opposed to €147.8 m in 2017).

(Cyprus News Agency)

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