General government surplus at 4.9% of GDP

Cyprus` General Government recorded a surplus of €1,066,0 mn (4.9% of GDP) for the period of January-October 2019 as compared to a deficit of €626.4 mn for the corresponding period of 2018 (-3.0% of GDP), according to the preliminary General Government fiscal results which are prepared by the Statistical Service of Cyprus (CYSTAT).

According to the Statistical Service, total expenditure for the first ten months of 2019 reached €6,349.8 mn, which corresponds to a decrease of €905.4 mn (-12.5%) as compared to the corresponding period of 2018 (€7,255.2 mn in January-October 2018).

Social benefits recorded an increase of €312.5 mn (+14.7%) to reach €2,440.5 mn in January-October 2019 as compared to €2,128.0 mn in January-October 2018.

The compensation of employees (including imputed social contributions and pensions of civil servants) recorded an increase of €201.8 mn (+10.7%) and reached €2,079.7 mn in January-October 2019, as compared to €1,877.9 mn in January-October 2018.

Intermediate consumption increased by €117.6 mn (+20.9%) and reached €680.0 mn for the first ten months of 2019 as compared to €562.4 mn in the corresponding period of 2018.

Current transfers recorded an increased expenditure by €60.7 mn (+16.8%) and reached €421.7 mn in comparison to €361.0 mn in the corresponding period of the previous year, while payable interest increased by €53.6 mn (+14.1%) during the period of January-October 2019 and reached €432.8 mn. The corresponding amount for the same period of 2018 was €379.2 mn.

Subsidies increased by €2.6 mn (+7.7%) to reach €36.3 mn during the first ten months of 2019 as compared to €33.7 mn during the corresponding period of last year.

Investment was confined to €205.2 mn, a reduction of €800.3 mn (-79.6%), during the first ten months of 2019, and capital transfers were limited to €53.6 mn, a reduction of €853.9 mn (-94.1%) during the same period. The corresponding expenditure recorded in 2018 were €1,005.5 mn and €907.5 mn respectively.

Revenue

Total revenue increased by €787.0 mn (+11.9%) to reach €7,415.8 mn during the period of January-October 2019, as compared to €6,628.8 mn during the corresponding period of 2018.

Social contributions collected by the State during this period increased significantly, by €492.6 mn (+32.8%), to total €1,992.6 mn, as compared to €1,500.0 mn in the corresponding period of 2018.

Revenue from taxes on income and wealth also increased significantly (by €118.1 mn, that is +8.1%) and reached €1,579.8 mn during the period of January-October 2019, as opposed to €1,461.7 mn during the corresponding period of 2018. Capital transfers received by the State reached €158.3 mn, an increase of €63.8 mn, which corresponds to +67.5%, as opposed to the €94.5 mn received during the corresponding period of 2018.

Revenue received from taxes on production and imports recorded an increase of €55.7 mn (+2.0%) to reach €2,8688 mn, as compared to €2,813.1 mn received during the corresponding period of 2018. However, net VAT revenue (that is included in this category) registered an increase of €73.2 mn (+4.1%) and reached €1,859.3 mn in 2019, as compared to €1,786.1 mn in 2018.

Property income recorded a €43.9 mn increase (+57.1%) to reach €120.8 mn during the period of January-October 2019 (as compared to €76.9 mn in January-October 2018). Revenue from the sale of goods and services recorded an increase of €14.9 mn (+2.9%) and reached €533.1 mn as compared to €518.2 mn during the first ten months of 2018.

The only category to record a decrease during this period is that of current transfers, that were reduced by €2.0 mn (-1.2%) and were confined to €162.4 mn during the period of January-October 2019 as compared to €164.4 mn in the corresponding period of 2018.