Fiscal surplus decreases to €147 mn in January

Cyprus General Government recorded a fiscal surplus of €147 mn (0.7% of GDP) in January 2021, compared to a surplus of €223.5 mn (1.1% of GDP) that was recorded in January 2020, according to the preliminary General Government fiscal results prepared by the Statistical Service of Cyprus.

During January 2021, total expenditure increased by €40.5 mn (+6.4%) and amounted to €678.2 mn, compared to €637,7 mn in the corresponding month of 2020. It is noted, that this increase in expenditure is due to the support measures taken to address the effects of the Covid-19 pandemic on employment, which amounted to €38.3 mn.
 
Specifically, intermediate consumption increased by €10.4 mn (+22.3%) and amounted to €57.2 mn, compared to €46.8 mn in 2020. Social benefits increased by €9.6 mn (+3.7%) and amounted to €265.9 mn, compared to €256.3 mn in 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €9.2 mn (+4.4%) and amounted to €220,0 mn, compared to €210.8 mn in 2020. Subsidies increased by €37.3 mn and amounted to €40.1 mn, compared to €2.8 mn in 2020. The increase in the specific category is mainly attributed to the support measures to enterprises due to the consequences of the Covid-19 pandemic. Interest payable increased by €20.7 mn and amounted to €41.5 mn, compared to €20.8 mn in 2020.
 
The capital account decreased by €5.1 mn (-21.0%) to €19.1 mn, from €24.1 mn in 2020. This decrease is due to gross capital formation, which decreased by €5.1 mn (-26.7%) to €13.9 mn, from €19.0 mn in 2020. Current transfers decreased by €41.7 mn (-54.8%) to €34.4 mn, from €76.1 mn in 2020.
 
During January 2021, total revenue decreased by €36 mn (-4.2%) to €825.1 mn, compared to €861.1 mn in the corresponding month of 2020.
 
In detail, taxes on production and imports decreased by €33.3 mn (-11.7%) to €252.6 mn, from €285.9 mn in 2020, of which net VAT revenue increased by €11.4 mn (+6.5%) and amounted to €187.1 mn, compared to €175.7 mn in 2020. Current transfers decreased by €1.7 mn (-15.7%) to €9.2 mn, from €10.9 mn in 2020. Social contributions decreased by €23.6 mn (-9.9%) to €214.1 mn, from €237.7 mn in 2020. Capital transfers decreased by €1.5 mn (-42.9%) to €2 mn, from €3.5 mn in 2020.
 
On the contrary, revenue from the sale of goods and services increased by €12.9 mn (+25.5%) and amounted to €63.4 mn, compared to €50.5 mn in 2020. Revenue from taxes on income and wealth increased by €5.1 mn (+1.9%) and amounted to €268.3 mn, compared to €263.2 mn in 2020.Property income increased by €6.2 mn (+65.9%) and amounted to €15.5 mn, compared to €9.4 mn in 2020.
 
Increased amounts in specific categories of expenditure and revenue are partly attributed to the full implementation of the National Health System as of 01.06.2020.