Government surplus of €141,8 mn for the period of January-July 2022

The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a surplus of €141,8 mn (0,6% of GDP) for the period of January-July 2022, as compared to a deficit of €711,0 mn (3,0% of GDP) that was recorded during the period of   January-July 2021.

During the period of January-July 2022, total expenditure increased by €9,5 mn (+0,2%) and amounted to €5.753,3 mn, compared to €5.743,8 mn in the corresponding period of 2021.

In detail, social benefits increased by €226,4 mn (+10,6%) and amounted to €2.352,7 mn, compared to €2.126,3 mn in 2021. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €72,2 mn (+4,5%) and amounted to    €1.690,8 mn, compared to €1.618,6 mn in 2021. Intermediate consumption increased by €86,6 mn (+16,9%) and amounted to €597,4 mn, compared to €510,8 mn in 2021. Current transfers increased by €32,2 mn (+9,3%) and amounted to €380,2 mn, compared to €348,0 mn in 2021.

The capital account increased by €79,4 mn (+24,6%) and amounted to €402,4 mn, compared to     €323,0 mn in 2021. In detail, gross capital formation increased by €45,6 mn (+16,9%) and amounted to €315,9 mn, compared to €270,3 mn in 2021 and other capital expenditure increased by €33,8 mn (+64,1%) and amounted to €86,5 mn, compared to €52,7 mn in 2021.

On the contrary, subsidies decreased by €460,9 mn to €44,1 mn, from €505,0 mn in 2021. Interest payable decreased by €26,3 mn (-8,4%) to €285,7 mn, from €312,0 mn in 2021.

During the period of January-July 2022, total revenue increased by €862,3 mn (+17,1%) and amounted to €5.895,1 mn, compared to €5.032,8 mn in the corresponding period 2021.

In detail, taxes on production and imports increased by €342,2 mn (+18,3%) and amounted to     €2.212,3 mn, compared to €1.870,1 mn in 2021, of which net VAT revenue increased by €267,7 mn (+22,6%) and amounted to €1.454,4 mn, compared to €1.186,7 mn in 2021. Revenue from taxes on income and wealth increased by €242,9 mn (+22,0%) and amounted to €1.344,9 mn, compared to   €1.102,0 mn in 2021. Social contributions increased by €236,9 mn (+16,1%) and amounted to        €1.707,0 mn, compared to €1.470,1 mn in 2021. Revenue from the sale of goods and services increased by €47,0 mn (+14,3%) and amounted to €374,8 mn, compared to €327,8 mn in 2021. Property income increased by €37,9 mn (+58,8%) and amounted to €102,4 mn, compared to        €64,5 mn in 2021.

On the contrary, capital transfers decreased by €30,1 mn (-41,7%) to €42,1 mn, from €72,2 mn in 2021. Current transfers decreased by €14,4 mn (-11,4%) to €111,6 mn, from €126,0 mn in 2021.