Due to a significant increase of 16% in revenue the General Government's deficit shrank to €409.1 mn or 1.8% of GDP in 2021 compared to €1,212.8 mn (5.6% of GDP), preliminary fiscal results published by the Statistical Service of Cyprus (CyStat) on Monday show.
Expenditure
During the period of January- December 2021, total expenditure increased by €560 mn (5.8%) and amounted to €10.284.3 mn, compared to €9,724.3 mn in the corresponding period of 2020.
As noted by CyStat, the increase in specific expenditure categories is due to the support measures taken to address the effects of the Covid-19 pandemic.
In particular, social benefits increased by €270.6 mn (7.5%) and amounted to €3,862.7 mn, compared to €3,592.1 mn in 2020.
Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €104.9 mn (3.6%) and amounted to €3,002.8 mn, compared to €2,897.9 mn in 2020.
Subsidies increased by €7 mn (1.2%) and amounted to €585.2 mn, compared to €578.2 mn in 2020. Current transfers increased by €73.2 mn (+13,6%) and amounted to €612.5 mn, compared to €539.3 mn in 2020.
Intermediate consumption increased by €134.9 mn (14.9%) and amounted to €1,041.6 mn, compared to €906.7 mn in 2020.
On the contrary, according to CyStat, interest payable decreased by €26.7 mn (5.8%) to €431.8 mn, from €458.5 mn in 2020.
The capital account decreased by €3.8 mn (0,5%) to €747.7 mn, from €751.5 mn in 2020. In detail, gross capital formation increased by €10.9 mn (1.8%) and amounted to €620.1 mn, compared to €609.2 mn in 2020 and other capital expenditure decreased by €14.8 mn (10.4%) to €127.6 mn, from €142.4 mn in 2020.
Revenue
During the period of January- December 2021, total revenue increased by €1,363.7 mn (16,0%) and amounted to €9,875.2 mn, compared to €8,511.5 mn in the corresponding period 2020.
In detail, taxes on production and imports increased by €423.2 mn (14.6%) and amounted to €3,322.5, compared to €2,899.3 mn in 2020, of which net VAT revenue increased by €329.8 mn (18,5%) and amounted to €2,115.8 mn, compared to €1,786.0 mn in 2020.
Revenue from taxes on income and wealth increased by €372.2 mn (17.7%) and amounted to €2,472.8 mn, compared to €2,100.6 mn in 2020.
Social contributions increased by €305.6 mn (12.7%) and amounted to €2,717.1 mn, compared to €2,411.5 mn in 2020.
Capital transfers increased by €207.2 mn and amounted to €318.8 mn, compared to €111.6 mn in 2020.
Current transfers increased by €8 mn (3.4%) and amounted to €242.1 mn, compared to €234.1 mn in 2020.
Revenue from the sale of goods and services increased by €47.5 mn (+7.4%) and amounted to €686.2 mn, compared to €638.7 mn in 2020.