Fiscal Accounts of General Government, Jan 2020

The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a surplus of €237,5 mn (1,0% of GDP) for January 2020, as compared to a surplus of €258,1 mn for January 2019 (1,2% of GDP).

JANUARY 2020 EXPENDITURE

Total expenditure for the month of January 2020 recorded an increase of €72,4 mn (+13,1%) as compared to 2019 and reached €624,2 mn (€551,8 mn in January 2019).

Intermediate consumption increased by €43,9 mn (+126,5%) to reach €78,6 mn in comparison to €34,7 mn in January 2019, due to the inclusion of HIO into the general government account. Social benefits increased by €17,8 mn (+8,7%) to reach €221,6 mn (as compared to €203,8 in January 2019).

The compensation of employees (including imputed social contributions and pensions of civil servants) increased by €14,7 mn (+7,6%) to reach €208,3 mn (€193,6 mn in January 2019).

The capital account also recorded a small increase. Gross fixed capital formation increased by €3,7 mn to record an expenditure of €8,6 mn in January 2020 as compared to the €4,9 mn spent in January 2019, while other capital investment increased by €1,2 mn to reach €3,2 mn as opposed to the €2,0 mn expenditure of January 2019.

Subsidies recorded a marginal increase of €0,1 mn and reached €2,8 mn.

The remaining two expenditure categories recorded a decrease. Current transfers were reduced by €6,4 mn (-7,3%) thus being confined to €81,5 mn in January 2020 (€87,9 mn in January 2019), while payable interest was reduced to €19,6 mn in 2020 from €22,2 mn in January 2019 (€2,6 mn or 11,7% decrease).

The increased expenditure in the categories above is partly due to the implementation of the National Health System as of 01.03.2019.

JANUARY 2020 REVENUE

Total revenue increased by 6,4% (€51,8 mn) to total €861,7 mn in January 2020 as compared to €809,9 mn in January 2019.

Social contributions collected in 2020 exhibited a growth of 34,5% (or €63,0 mn) and reached €245,5 mn (€182,5 mn in January 2019).

Revenue from taxes on income and wealth and from current transfers increased by the same amount (€2,0 mn) to reach €258,7 mn and €10,3 mn respectively (+0.8% and +24,1%).

The remaining revenue categories recorded a decrease during the first month of 2020. Specifically, taxes on production and imports registered a €11,3 mn decrease (-3,8%) as compared to 2019 and were confined to €289,3 mn (€300,6 mn in January 2019), of which net VAT revenue decreased by 1,4%, which corresponds to €2,5 mn, and recorded a reduced revenue of €180,5 mn (as opposed to €183,0 mn in January 2019).

Capital transfers received by the State were reduced by €2,1 mn to total €3,2 mn in 2020, as the capital transfers received in January 2019 totalled €5,3 mn. Revenue from the sale of goods and services decreased by €1,7 mn (or 3,1%) to total €52,9 mn in 2020 as compared to €54,6 mn that were collected in 2019.

Finally, property income remained at similar levels as 2019, as they were only reduced by €0,1 mn and were confined to €1,8 mn in 2020.

Increased revenue in some revenue categories is partly due to the implementation of the National Health System as of 01.03.2020.

Source: Republic of Cyprus, Ministry of Finance, Statistical Service