Cyprus General Government posted a small deficit amounting to €11.4 million or 0.05% of GDP in the first half of 2022, compared with a deficit of €751 mn or 3.2% of GDP in the period of January-June 2021.
The preliminary fiscal results published by the Statistical Service of Cyprus (Cystat) show that the improvement is driven by the reduction in public spending as Covid-19 pandemic measures have been phased out, combined with increased revenue driven by the recovery of economic activity.
Expenditure down by 1%
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According to Cystat during the period of January-June 2022, total expenditure decreased by €49.8 mn or by annual 1.0% to €4,819.6 mn, from €4,869.4 mn in the respective period of 2021.
Subsidies decreased by €438 mn to €38.2 mn, from €476.2 mn in 2021. Interest payable decreased by €18,4 mn (-8.5%) to €198 mn, from €216.4 mn in 2021.
Social benefits increased by €216.4 mn or by 11.9% to €2,032.5 mn, compared to €1,816.1 mn in 2021, while compensation of employees (including imputed social contributions and pensions of civil servants) increased by €70.9 mn (+5.1%) and amounted to €1.454.9 mn, compared to €1,384 mn in 2021.
Intermediate consumption increased by €74.1 mn (+17,7%) and amounted to €491.5 mn, compared to €417.4 mn in 2021. Current transfers rose by €21.9 mn (+7,1%) and amounted to €329.8 mn, compared to €307.9 mn in 2021.
The capital account increased by €23.4 mn (+9,3%) and amounted to €274.7 mn, compared to €251.3 mn in 2021. Gross capital formation declined by €7.9 mn (-3.8%) to €202.3 mn, from €210.2 mn in 2021 and other capital expenditure increased by €31.3 mn (+76.0%) and amounted to €72.4 mn, compared to €41,1 mn in 2021, Cystat added.
Revenue Up by 16.7%
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During the period of January-June 2022, total revenue increased by €689.5 mn (+16,7%) amounting to €4,808.2 mn, compared to €4,118.7 mn in the respective period of last year.
Taxes on production and imports rose by €234.1 mn (+14.9%) and amounted to €1,801.8 mn, compared to €1.567.7 mn in 2021, of which net VAT revenue increased by €192 mn (+19%) and amounted to €1,203.2 mn, compared to €1,011.2 mn in 2021.
Revenue from taxes on income and wealth increased by €203.6 mn (+24,8%) and amounted to €1,023.5 mn, compared to €819.9 mn in 2021.
Social contributions increased by €214.8 mn (+17.1%) and amounted to €1,468.8 mn, compared to €1,254 mn in 2021. Revenue from the sale of goods and services rose by €58.0 mn (+23%) and amounted to €310.7 mn, compared to €252.7 mn in 2021.
Property income increased by €15.5 mn (+27.7%) and amounted to €71.5 mn, compared to €56 mn in 2021.
Capital transfers decreased by €31.8 mn (-45.0%) to €38.9 mn, from €70.7 mn in 2021, while current transfers decreased by €4.7 mn (-4,8%) to €93 mn, from €97.7 mn in 2021, Cystat said.
Source: Cyprus News Agency