One in three euros of state expenditure goes to pay the public servants’ wage bill which is estimated to rise by 4.1% in 2020 compared to €2.87 billion in 2019.
This is due to cost of living allowance (Cola) payments and pay increments and because several vacancies have now been filled.
In fact, the state payroll is expected to increase by €663 million between 2017 – that is, a year after Cyprus exited the austerity memorandum – and 2022.
Specifically, staff costs are estimated to rise from €2.42 billion in 2017 to €3.08 billion in 2022. And total government expenditure is estimated to reach €9.21 billion in 2020 and €9.89 billion in 2022.
The breakdown of expenditure is of particular interest, too, with 2020’s annual budget showing that pensions and grants are estimated at €679.8 million from €675.8 million the previous year. In 2022, these will rise to €735.7 million.
In addition, social benefits are particularly high in 2020 reaching a total of €1.47 billion from €994.9 million in 2019. In 2021 and 2022, they are expected to drop to €1.11 billion and €1.10 billion respectively.
State operation costs are estimated to be €798.2 million in 2020, slightly less than the total of €841.1 million in 2019. Operation costs are estimated to rise to €1 billion in 2021, just like in 2022.
Expenditure for maintenance and repairs is estimated at €85.7 million in 2020, but that amount is estimated to be reduced to €77.8 million by 2021.
For staff training / conferences / seminars costs are estimated at €21.1 million in 2020 from €18.9 million in 2019.
As for state revenue, this is estimated to be reduced to about €10 billion in 2020 from €1.16 billion in 2019.
The most important categories of revenue are direct and indirect taxes which are budgeted to an overall €5.72 billion in 2020 and account for 82% of total revenue.
The remaining 18% of revenue, excluding loan receivables, relates to non-tax revenue such as sales of goods and services and transfers/sponsorship which are estimated at €1.24 billion by 2020.
Read more:
https://in-cyprus.com/cabinet-approves-first-supplementary-state-budget/
