The General Government deficit reached €1,059.0 mn (5% of GDP) for the period of January-December 2020, as compared to a surplus of €325.9 mn (1.5% of GDP) that was recorded during the period of January-December 2019, according to the preliminary fiscal results, prepared by the Statistical Service of Cyprus (CyStat)
A CyStat announcement says that during the period of January-December 2020, total expenditure increased by €1,029.5 mn (+11.5%) and amounted to €9,946.6 mn, compared to €8,917.1 mn in the corresponding period of 2019.
It is noted, that this significant increase in expenditure is due to the support measures taken to address the effects of the Covid-19 pandemic on employment, which amounted to €546.5 mn.
Specifically, intermediate consumption increased by €35.1 mn (+3.4%) and amounted to €1,056.6 mn, compared to €1,021.5 mn in 2019. Social benefits increased by €584.8 mn (+19.3%) and amounted to €3,619.0 mn, compared to €3,034.2 mn in 2019. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €159.4 mn (+5.8%) and amounted to €2,892.1 mn, compared to €2,732.7 mn in 2019. Subsidies increased by €508.1 mn and amounted to €578.2 mn, compared to €70.1 mn in 2019. The increase in the specific category is mainly attributed to the support measures to enterprises due to the consequences of the Covid-19 pandemic. Current transfers increased by €20.7 mn (+3.7%) and amounted to €571.8 mn, compared to €551.1 mn in 2019.
The capital account decreased by €262.8 mn (-26.4%) to €734.2 mn, from €997 mn in 2019. This decrease is mainly due to other capital expenditure, which decreased by €326.9 mn (-72%) to €127.1 mn, from €454 mn in 2019. On the contrary, gross capital formation increased by €64.1 mn (+11.8%) and amounted to €607.1 mn, compared to €543 mn in 2019. Interest payable decreased by €15.7 mn (-3.1%) to €494.8 mn, from €510.5 mn in 2019.
It is also noted that during the period of January-December 2020, total revenue decreased by €355.3 mn (-3.8%) to €8,887.7 mn, compared to €9,243.0 mn in the corresponding period 2019.
In detail, taxes on production and imports decreased by €300 mn (-9%) to €3,029.1 mn, from €3,329.1 mn in 2019, of which net VAT revenue decreased by €165.4 mn (-8%) to €1,900.1 mn, compared to €2,065.5 mn in 2019. Revenue from taxes on income and wealth decreased by €31.7 mn (-1.5%) to €2,124.6 mn, from €2,156.3 mn in 2019. Property income decreased by €63.3 mn (-29.7%) to €150 mn, from €213.3 mn in 2019. Current transfers decreased by €9.9 mn (-4.2%) to €225.9 mn, from €235.8 mn in 2019.
On the contrary, social contributions increased by €25.8 mn (+1.1%) and amounted to €2,403.9 mn, compared to €2,378.1 mn in 2019. Revenue from the sale of goods and services increased by €13.4 mn (+1.6%) and amounted to €853.8 mn, compared to €840.4 mn in 2019. Capital transfers increased by €10.4 mn (+11.6%) and amounted to €100.4 mn, compared to €90 mn in 2019.
Increased amounts in specific categories of expenditure and revenue are partly attributed to the implementation of the first stage of the National Health System as of 01.06.2019 and its full implementation as of 01.06.2020.