28/10/2014 06:22
The Cypriot fiscal balance remained positive until the end of the third quarter, exceeding forecasts and boosting recent Ministry’s estimate for a decline in the 2014 budget deficit to 2.5% of GDP and for a primary surplus.
Three months before the end of the year, the balance records an improvement of€619million compared to last year.
In the past three years, the fourth quarter shows deficit between €500 and €600 million, which means that the MoF is very close to meeting its 2.5%-target.
According to new figures, the fiscal balance recorded a surplus of €207.6 million or 1.32% of GDP against a deficit of €411.8 million or 2.5% last year.
Public spending declined 7.2% or €356.2 million to €4612.5 million from €4968.8 million in the corresponding period last year. By August, the decrease amounted to 7.4%.
A reduction of €86million was registered in the cost of debt service and of €107.5million in the current transfers.
The cost for public wages is also lower by €59.8 million and that for the purchase of goods and services by €39.5 million.
On the other hand, the payments of social insurance funds show an increase of €45 million and the social pension costs of €1 million.
Revenues increase 4.5%
Despite the recession, which is expected to reach 3% this year, total government revenues have increased 4.5% or € 202.6 million to €4737.5million from €4534.9 million. By August the increase was 3%.
Tax revenues recorded an increase of €207.3 million with €108.6million emerging from direct taxes, €30.2million from the SSF contributions and €68.5million from indirect taxes.
Non-tax revenues are declining €4.7million to €689.4 million from €694.1 million last year.
The primary surplus – the surplus excluding debt servicing costs - amounted to €601.1 million from €67.7 million last year.
Three months before the end of the year, the balance records an improvement of€619million compared to last year.
In the past three years, the fourth quarter shows deficit between €500 and €600 million, which means that the MoF is very close to meeting its 2.5%-target.
According to new figures, the fiscal balance recorded a surplus of €207.6 million or 1.32% of GDP against a deficit of €411.8 million or 2.5% last year.
Public spending declined 7.2% or €356.2 million to €4612.5 million from €4968.8 million in the corresponding period last year. By August, the decrease amounted to 7.4%.
A reduction of €86million was registered in the cost of debt service and of €107.5million in the current transfers. The cost for public wages is also lower by €59.8 million and that for the purchase of goods and services by €39.5 million.
On the other hand, the payments of social insurance funds show an increase of €45 million and the social pension costs of €1 million.
Revenues increase 4.5%
Despite the recession, which is expected to reach 3% this year, total government revenues have increased 4.5% or € 202.6 million to €4737.5million from €4534.9 million. By August the increase was 3%.
Tax revenues recorded an increase of €207.3 million with €108.6million emerging from direct taxes, €30.2million from the SSF contributions and €68.5million from indirect taxes.
Non-tax revenues are declining €4.7million to €689.4 million from €694.1 million last year.
The primary surplus – the surplus excluding debt servicing costs - amounted to €601.1 million from €67.7 million last year.
Related Articles
