04/01/2016 12:00
The fiscal balance of the general government continued to register a considerable deterioration during the first eleven months of the year.
The return of Cyprus to a recovery path is not accompanied by a respective improvement of public finances, as there is a deterioration of revenues and a small increase in expenditures.
According to new data by Cystat, the fiscal surplus for the general government in the first eleven months of 2015 amounted to €2 mn against a surplus of €252 mn in the corresponding 2014 period.
In the first ten months of 2015 fiscal surplus amounted to €65 mn.
Central government revenues
Total public revenues fell by 3,5% or €206 mn in the first eleven months of the year to €5.634 mn from €5.840 mn in the same period of 2014. The decline is partly attributable to the lower dividend granted by the Central Bank this year, as it stood at €133 mn from €189 mn last year.
Direct taxes fell by €96 mn while indirect taxes increased by €31 mn while social security contributions were up by €32 mn.
As a result tax revenue was down by €33 mn.
Non-tax revenues decreased by €123 mn mainly due to the lower central bank dividend, bringing the current revenues to €5,58 bn, €156 mn less than in Jan-Nov 2014.
Due to a decline of €50 mn in grants the total change in overall revenues of the central government reached -€206 mn.
Central government spending
The Cystat data show a small increase in public spending mostly due to current transfers.
Total primary expenditure increased by 2.8% or €143 mn to €5.308 mn from €5.165 mn in 2014.
The largest increase of 14,6% or €173 mn was registered in current transfers reaching €1354 mn from €1182 mn.
On the contrary, the biggest decreases were evidenced in social security payments and wages and salaries as they declined by €47 mn and €25 mn respectively.
The costs of debt service increased to €500 mn from €450 mn in 2014.
As a result, the primary surplus – the surplus without the cost of debt service - of the central government reached €326 mn compared to €675 mn in the eleven months of 2014 while the overall balance stood at -€174 mn compared to €225 mn.
General government
Despite the drop in revenues and increase in spending, the overall balance was positive due to a surplus from local authorities and semi-public entities as well as from technical adjustments.
There was a surplus of €10 mn from local authorities and semi-public entities compared to a surplus of €1 mn in 2014.
Cash flow adjustments as per the EU methodology reached €166 mn compared to €26 mn in the same period of the previous year. The figures given do not explain the adjustments made.
The resulting balance of the general government reached €2 mn compared to €252 mn in 2014.
According to the objectives of the updated memorandum, the primary surplus should reach €334 mn or 1,9% of GDP in 2015 while the general balance is to be -€156 mn or -0,9% of GDP.
The return of Cyprus to a recovery path is not accompanied by a respective improvement of public finances, as there is a deterioration of revenues and a small increase in expenditures.
According to new data by Cystat, the fiscal surplus for the general government in the first eleven months of 2015 amounted to €2 mn against a surplus of €252 mn in the corresponding 2014 period.In the first ten months of 2015 fiscal surplus amounted to €65 mn.
Central government revenues
Total public revenues fell by 3,5% or €206 mn in the first eleven months of the year to €5.634 mn from €5.840 mn in the same period of 2014. The decline is partly attributable to the lower dividend granted by the Central Bank this year, as it stood at €133 mn from €189 mn last year.
Direct taxes fell by €96 mn while indirect taxes increased by €31 mn while social security contributions were up by €32 mn.
As a result tax revenue was down by €33 mn.
Non-tax revenues decreased by €123 mn mainly due to the lower central bank dividend, bringing the current revenues to €5,58 bn, €156 mn less than in Jan-Nov 2014.
Due to a decline of €50 mn in grants the total change in overall revenues of the central government reached -€206 mn.
Central government spending
The Cystat data show a small increase in public spending mostly due to current transfers.
Total primary expenditure increased by 2.8% or €143 mn to €5.308 mn from €5.165 mn in 2014.
The largest increase of 14,6% or €173 mn was registered in current transfers reaching €1354 mn from €1182 mn.
On the contrary, the biggest decreases were evidenced in social security payments and wages and salaries as they declined by €47 mn and €25 mn respectively.
The costs of debt service increased to €500 mn from €450 mn in 2014.
As a result, the primary surplus – the surplus without the cost of debt service - of the central government reached €326 mn compared to €675 mn in the eleven months of 2014 while the overall balance stood at -€174 mn compared to €225 mn.
General government
Despite the drop in revenues and increase in spending, the overall balance was positive due to a surplus from local authorities and semi-public entities as well as from technical adjustments.
There was a surplus of €10 mn from local authorities and semi-public entities compared to a surplus of €1 mn in 2014.
Cash flow adjustments as per the EU methodology reached €166 mn compared to €26 mn in the same period of the previous year. The figures given do not explain the adjustments made.
The resulting balance of the general government reached €2 mn compared to €252 mn in 2014.
According to the objectives of the updated memorandum, the primary surplus should reach €334 mn or 1,9% of GDP in 2015 while the general balance is to be -€156 mn or -0,9% of GDP.
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