Cyprus budget surplus at Euros 437 million in January – October 2018

Cyprus recorded a budget surplus amounting to Euros 436.8 million for the period of January � October 2018, mainly driven by indirect taxes which reached Euros 2.6 billion, according to data released by the Treasury of the Republic on budget execution for the first ten months of year.

Compared with the respective period last year, the budget deficit marked an increase of 80%, mainly owing to reduced expenditure execution.

Indirect taxes (mainly VAT) represented 51.5% of total revenue, that amounted to Euros 5.04 billion for the period of January � October 2018 compared with Euros 5.01 billion in the respective period of 2017. Total revenue amounted to 84% of the revenue budgeted for the whole of the year.

Compared with 2017, indirect taxes marked an increase of 1.5% in January � October 2018 reflecting the acceleration of economic activity.

Revenue from direct taxes in the first ten months of 2018 reached Euros 1.72 billion, marking an increase of 2.34% compared with the respective period of 2017. Revenue from direct taxes amounted to 77% of total direct taxes projected for the year.

In October 2018 state coffers received Euros 472 million in revenue, marking a marginal decrease (Euros 18 million) compared with September 2018 as well compared with October 2017.

Budget expenditure for the period of January � October 2018 amounted to Euros 4.6 billion, reduced by 3.41% compared with the respective period of 2017. Expenditure execution amounted 67% of the total spending projected for the year.

Expenditure for state employees amounted to Euros 1.37 billion, marking an increase of 4.01% compared with the respective period of 2017, whereas welfare state spending, the budget second highest expenditure, amounted to Euros 673.8 million, compared with Euros 663 million in January � October 2017.

Debt servicing expenditure for January � October 2018 declined by 16.7% to Euros 382 million.

The Treasury tables are reported on cash basis and exclude debt collections and debt repayments.

Source: Cyprus News Agency