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Fiscal balance deteriorates

04/07/2016 15:47
Budget surplus of the general government in the first five months of 2016 on a cash basis, decreased to € 23,1 million from € 94,8 million in the corresponding period of 2015, according to data released Friday by the Statistical Service of Cyprus.

In addition, the primary balance, which excludes interest, decreased in January - May of 2016 to €197.4 million from € 262.3 million the first 5 months of 2015.

The balance of the central government recorded on a cash basis a slight deterioration, showing in the first 5 months of 2016 a deficit of € 20,2 million from a deficit of € 13,3 million in the corresponding period of 2015 due to the small increase in the expenditure.

Specifically, according to the report, revenues of the Central Government increased on a cash basis by € 3 million to € 2,494 billion from € 2,491 billion in the same period last year. Expenses increased by € 10 million at € 2,514 billion, from € 2,504 billion last year.

Revenue

Revenue from direct taxes increased in the first 5 months of 2016 to € 714.4 million from € 706,2 million, while revenues from indirect taxes amounted to € 965,3 million, from € 961 4 million. VAT revenue fell to € 562,7 million, from € 574,8 million for the first 5 months of 2015.

The contributions to the Social Security Fund amounted to € 430.3 million from € 400.2 million.

Expenditure

Furthermore, spending on wages and salaries amounted in January - May 2016 to € 654,2 million from € 648.8 million in the corresponding period last year. Interest payments amounted to € 176 million from € 170.9 million . Payments for social security amounted to € 607,5 million, from €69,0 million and pension expenditure to € 214.1 million from € 247.3 million.