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Fiscal balance deteriorates in 2016

31/03/2016 15:36
The fiscal balance of Cyprus deteriorated in the first two months of 2016, despite the reduction of expenditure and the rise on central government revenues.

According to new data, public finances recorded a surplus of €39,2 mn in January- February against a surplus €102,7 mn in January-February 2015.

The Cyprus budget typically presents a surplus in the first nine or ten months of the year.

Government expenditure fell by 1% or €10 mn to €971 mn from €980,6 mn in 2015.

Total revenue rose by 1,3% or €12 mn to €991,1 mn from €978,8 mn.

The primary balance, which does not include the cost of servicing the public debt, dropped to €94,9 mn from €115,6 mn in January-February 2015.

The surplus refers to the general government’s consolidated account.

Excluding adjustments and other general government bodies a deficit of €1,8 mn is recorded against a surplus of €20,1 mn last year.

In 2015, the fiscal deficit reached €81 mn against €43 mn in the previous year, which corresponds to about 0,4% of Cyprus’ GDP.

Last year’s accounts benefited from nearly €200 mln in unspecified adjustments made by the government.