The preliminary General Government fiscal results indicate a deficit of €1.050,9 mn (-5,1% of GDP) for 2018, as compared to a surplus of €344,2 mn for 2017 (1,8% of GDP).
The results are prepared by the Statistical Service of Cyprus (CYSTAT) include the fiscal burden of €1.662,0 mn, that was the result of the sale of the Cyprus Cooperative Bank Ltd (CCB) to the Hellenic Bank.
Excluding the fiscal burden of CCB, the fiscal balance would register a surplus of €611,1 mn (+2,9% of GDP).
According to figures published today by Statistical Service, total expenditure for 2018, including the fiscal burden of CCB, recorded an increase of €1.958,9 mn (+26,9%) as compared to 2017 and reached €9.253,1 mn (€7.294,2 mn in 2017).
Capital expenditure recorded an increase of €1.657,2 mn and reached €1.747,6 mn (€90,4 mn in 2017).
Intermediate consumption increased by €105,3 mn (+14,8%) to reach €814,9 mn in comparison to €709,6 mn during the corresponding period of the previous year, while the compensation of employees (including imputed social contributions and pensions of civil servants) increased by €101,9 mn (+4,3%) to reach €2.456,3 mn (€2.354,4 mn in 2017).
Social benefits registered an increase of €89,0 mn (+3,4%) to reach €2.708,8 mn (as opposed to €2.619,8 mn in 2017), and payable interest also increased by €12,5 mn to reach €515,1 mn as compared to €502,6 mn which was the interest paid in 2017.
Current transfers increased by €10,4 mn (+2,2%) to reach a total of €474,0 mn in 2018, as opposed to a corresponding expenditure of €463,6 mn in 2017. Subsidies were also increased by €4,8 mn (8,7%) and reached €59,9 mn (as compared to €55,1 mn in 2017).
Capital investment is the only expenditure category that recorded a decrease of €22,2 mn (-4,5%) to record an amount of €476,5 mn in 2018 as compared to €498,7 mn in 2017. Excluding land annexations, that are included in capital investment, this expenditure is decreased by €54,0 mn, or 12,7% (€371,2 mn in 2018 as compared to €425,2 mn in 2017).
Total revenue increased by 7,4% that corresponds to an increase of €563,8 mn, to total €8.202,2 mn in 2018 (€7.638,4 mn in 2017).
Most of the revenue categories exhibited an increase in 2018. Specifically, taxes on production and imports registered a 7,9% increase from 2017, that is an increase of €241,3 mn (€3.297,6 mn in 2018 as opposed to €3.056,3 mn in 2017), of which net VAT revenue increased by 12,3%, which corresponds to €228,1 mn, and reached a total of €2.079,5 mn (as opposed to €1.851,4 mn in 2017).
Social contributions collected during 2018 increased by 7,8% (or €133,2 mn) and reached €1.842,8 mn (as compared to €1.709,6 mn in 2017). Revenue from taxes on income and wealth increased by €90,5 mn or 4,9% and reached €1.925,9 mn in 2018 in comparison to €1.835,4 mn in 2017, while capital transfers received by the State were increased by €78,0 mn to reach €167,2 mn (€89,2 mn in 2017).
The revenue from the sale of goods and services increased by €51,8 mn (or 8,9%) and totalled €633,0 mn, while the smallest increase was recorded by current transfers received that reached €229,1 mn in 2018 (€218,9 in 2017).
The only revenue category that registered a decrease was that of property income, which decreased by €31,9 mn and were confined to €115,9 mn in 2018 (as opposed to €147,8 mn in 2017).