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Government records surplus of 1% of GDP in Q1 2022

05/05/2022 09:02

The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CyStat) indicate a surplus of 1% of GDP, which translates to €239.3 mn, for the period of January-March 2022, as compared to a deficit of €137.4 mn (0,6% of GDP) that was recorded during the period of January-March 2021.

According to data published on Wednesday by CyStat, a large drop compared to the same period of 2021 was recorded in subsidies, while a large increase was observed in the collection of taxes, both on production and imports and from taxation on income and wealth.

During the period of January- March 2022, total expenditure decreased by €72.1 mn (-3.2%) to €2,212.6 mn, from €2,284.7 mn in the corresponding period of 2021.

Subsidies decreased by €254.1 mn to €20.7 mn, from €274.8 mn in 2021. Current transfers decreased by €2.4 mn (-1.5%) to €157.9 mn, from €160.3 mn in 2021.

On the contrary, social benefits increased by €91.4 mn (+11.0%) and amounted to €921.1 mn, compared to €829.7 mn in 2021. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €28.4 mn (+4.1%) and amounted to €717.1 mn, compared to €688.7 mn in 2021. Intermediate consumption increased by €32.1 mn (+18.6%) and amounted to €204.7 mn, compared to €172.6 mn in 2021. Interest payable increased by €13.8 mn (+20.1%) and amounted to €82.4 mn, compared to €68.6 mn in 2021.

The capital account increased by €18.6 mn (+20.7%) and amounted to €108.7 mn, compared to €90.1 mn in 2021. In detail, gross capital formation increased by €5.3 mn (+7.0%) and amounted to €80.0 mn, compared to €74.8 mn in 2021 and other capital expenditure increased by €13.4 mn and amounted to €28.7 mn, compared to €15.3 mn in 2021.

During the period of January- March 2022, total revenue increased by €304.6 mn (+14.2%) and amounted to €2,451.9 mn, compared to €2,147.3 mn in the corresponding period 2021.

In detail, taxes on production and imports increased by €108.5 mn (+14%) and amounted to €885.9 mn, compared to €777.4 mn in 2021, of which net VAT revenue increased by €80.8 mn (+16.2%) and amounted to €579.7 mn, compared to €498.9 mn in 2021. Revenue from taxes on income and wealth increased by €129.3 mn (+26.9%) and amounted to €609.8 mn, compared to €480.5 mn in 2021. Social contributions increased by €115.7 mn (+18.4%) and amounted to €744.7 mn, compared to €629 mn in 2021. Revenue from the sale of goods and services increased by €15.4 mn (+12.3%) and amounted to €141 mn, compared to €125.6 mn in 2021. Current transfers increased by €0.8 mn (+1.9%) and amounted to €42.0 mn, compared to €41.2 mn in 2021.

On the contrary, capital transfers decreased by €58.4 mn to €4.1 mn, from €62.5 mn in 2021. Property income decreased by €6.7 mn (-21.5%) to €24.4 mn, from €31.1 mn in 2021.