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Fiscal accounts generate surplus of €38 million in Q4 2021

02/05/2022 10:14

Cyprus fiscal accounts in the last quarter of 2021 generated a surplus of €37.7 million compared with a deficit of €648 million in the respective period of 2020.

According to preliminary data released on Friday by the Statistical Service of Cyprus (Cystat), the significant improvement in Q4 2021 was driven mainly by the significant increase in public revenue combined with the annual drop in public expenditure, albeit to a smaller extent.

Expenditure -2.9%

During the period of October-December 2021, total expenditure decreased by €91.2 mn or by -2.9% to €3,075.8 mn, from €3,167.1 mn in the corresponding period of 2020.

According to Cystat, social transfers decreased by €83.5 mn (-7.0%) to €1,106.6 mn, from €1,190.1 mn in the corresponding quarter of 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) decreased by €9.1 mn (-1.0%) to €915.1 mn, from €924.2 mn in the fourth quarter of 2020.

Subsidies decreased by €54.6 mn (-56.6%) to €41.9 mn, from €96.5 mn in the corresponding quarter of 2020. Interest payable decreased by €22.3 mn (-22.1%) to €78.6 mn, from €100.9 mn in the fourth quarter of 2020

The capital account decreased by €10.5 mn (-2.8%) from €363.6 mn (€275.9 mn capital formation and €87.7 mn capital transfers), compared to €374.1 mn (€341.4 mn capital formation and €32.7 mn capital transfers) in the corresponding quarter of 2020.

Intermediate consumption increased by €58.5 mn (+18.4%) and amounted to €377.5 mn, compared to €318.9 mn in the fourth quarter of 2020. Current transfers increased by €30.2 mn (+18.6%) and amounted to €192.6 mn, compared to €162.4 mn in the corresponding quarter of 2020.

Revenue +23,6%

During the period of October-December 2021, total revenue increased by €594.3 mn (+23.6%) to €3,113.5 mn, compared to €2,519.2 mn in the corresponding period 2020.

Taxes on production and imports increased by €200.0 mn (+28,5%) and amounted to €902.1 mn, compared to €702.1 mn in the corresponding quarter of 2020, of which net VAT revenue increased by €198.6 mn (+51.5%) and amounted to €584.0 mn, compared to €385.4 mn in the fourth quarter of 2020. Revenue from the sale of goods and services increased by €29.3 mn (+13.7%) and amounted to €242.7 mn, compared to €213.4 mn in the corresponding quarter of 2020. Social contributions increased by €40.9 mn (+5.5%) and amounted to €785.8 mn, compared to €744.9 mn in the fourth quarter of 2020.

Revenue from taxes on income and wealth increased by €196.6 mn (+29.5%) and amounted to €863.2 mn, compared to €666.6 mn in the corresponding quarter of 2020. Capital transfers increased by €163.3 mn and amounted to €213.9 mn, compared to €50.6 mn in the fourth quarter of 2020.

Current transfers decreased by €20.7 mn (-18.7%) to €89.9 mn, from €110.6 mn in the corresponding quarter of 2020, while Property income decreased by €15.1 mn (-48.7%) to €15.9 mn, from €31.0 mn in the fourth quarter of 2020, Cystat added.