You are here

Cyprus general government deficit up in first six months of 2021

06/08/2021 16:55

The general government deficit rose by 0.4% or €100.4 mn in the first six months of the year, compared with the same period of 2020.

The preliminary General Government fiscal results, announced Friday by the Statistical Service of Cyprus (CYSTAT) showed a deficit of €711.9 mn (3.3% of GDP) for the period of January-June 2021, compared with a deficit of €611.5 mn (2.9% of GDP) during the period of January-June 2020.

EXPENDITURE

During the period of January-June 2021, total expenditure increased by €523.5 mn (+12.1%) and amounted to €4,840.3 mn, compared with €4,316.8 mn in the corresponding period of 2020.

The increase in specific expenditure categories was a result of support measures taken to address the impact of the Covid-19 pandemic.

Social benefits increased by €203.1 mn (+12.6%) and amounted to €1,817.2 mn, compared with €1,614.1 mn in 2020.

Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €78.0 mn (+6.0%) and amounted to €1,376.4 mn, compared with €1,298.4 mn in 2020. Subsidies increased by €169.2 mn and amounted to €476.2 mn, compared with €307.0 mn in 2020.

The increase in the specific category is mainly attributed to additional support measures to enterprises due to the continuance of the Covid-19 pandemic. Current transfers increased by €37.7 mn (+13.2%) and amounted to €322.9 mn, compared with €285.2 mn in 2020.

Interest payable increased by €45.4 mn (+25.0%) and amounted to €227.1 mn, compared with €181.7 mn in 2020. Intermediate consumption increased by €29.1 mn (+7.6%) and amounted to €410.2 mn, compared with €381.1 mn in 2020.

On the contrary, the capital account decreased by €38.9 mn (-15.6%) to €210.3 mn, from €249.2 mn in 2020. In detail, gross capital formation decreased by €24.2 mn (-11,9%) to €180.2 mn, from €204.4 mn in 2020 and other capital expenditure decreased by €14.7 mn (-32.8%) to €30.1 mn, from €44.8 mn in 2020.

REVENUE

During the period of January-June 2021, total revenue increased by €423.1 mn (+11.4%) and amounted to €4,128.4 mn, compared with €3,705.3 mn in the corresponding period 2020.

In detail, taxes on production and imports increased by €191.3 mn (+13.9%) and amounted to €1,564.3, compared with €1,373.0 mn in 2020, of which net VAT revenue increased by €111.3 mn (+12.7%) and amounted to €990.3 mn, compared with €879.0 mn in 2020.

Revenue from taxes on income and wealth increased by €37.1 mn (+4.7%) and amounted to €819.7 mn, compared with €782.6 mn in 2020. Social contributions increased by €160.3 mn (+14.7%) and amounted to €1,251.0 mn, compared with €1,090.7 mn in 2020.

Capital transfers increased by €17.2 mn (+30.1%) and amounted to €74.3 mn, compared with €57.1 mn in 2020. Property income increased by €4.1 mn (+7.6%) and amounted to €57.5 mn, compared with €53.4 mn in 2020. Current transfers increased by €22.2 mn (+25.7%) and amounted to €108.5 mn, compared with €86.3 mn in 2020.

On the contrary, revenue from the sale of goods and services decreased by €9.1 mn (-3.5%) to €253.1 mn, from €262.2 mn in 2020.