Preliminary general government fiscal results indicate a deficit of €483.4 mln (2.1% of GDP) for the period of January-September 2021, as compared to a deficit of €599.8 mln (2.8% of GDP) recorded during the same period last year.
An announcement by the Statistical Service of Cyprus, responsible for preparing the fiscal results, says that during the period of January-September 2021, total expenditure increased by €654.2 mln (+9.9%) and amounted to €7,232.3 mln, compared to €6,578.1 mln in the corresponding period of 2020.
It is noted, that the increase in specific expenditure categories is due to the support measures taken to address the effects of the COVID-19 pandemic.
Specifically, social benefits increased by €342.6 mLn (+14.3%) and amounted to €2,738 mln, compared to €2,395.4 mln in 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €101.4 mln (+5.1%) and amounted to €2,075.1 mln, compared to €1,973.7 mln in 2020. Subsidies increased by €61.6 mln (+12.8%) and amounted to €543.3 mln, compared to €481.7 mln in 2020. The increase in the specific category is mainly attributed to additional support measures to enterprises due to the continuance of the COVID-19 pandemic. Current transfers increased by €67.4 mln (+17.9%) and amounted to €444.4 mln, compared to €377 mln in 2020. Intermediate consumption increased by €72.9 mln (+12.4%) and amounted to €659.6 mln, compared to €586.7 mln in 2020. Interest payable increased by €9.3 mln (+2.6%) and amounted to €367.1 mln, compared to €357.8 mln in 2020.
The capital account decreased by €1.2 mln (-0.3%) to €404.8 mln, from €405.9 mln in 2020. In detail, gross capital formation increased by €17.9 mln (+5.8%) and amounted to €327.3 mln, compared to €309.4 mln in 2020 and other capital expenditure decreased by €19.1 mln (-19.7%) to €77.5 mln, from €96.6 mn in 2020.
During the period of January-September 2021, total revenue increased by €770.6 mln (+12.9%) and amounted to €6,748.9 mln, compared to €5,978.3 mln in the corresponding period 2020.
In detail, taxes on production and imports increased by €215.8 mln (+9.8%) and amounted to €2,408.5, compared to €2.192.7 mln in 2020, of which net VAT revenue increased by €114.1 mln (+8.1%) and amounted to €1,514.7 mln, compared to €1,400.6 mln in 2020. Revenue from taxes on income and wealth increased by €192.5 mln (+13.4%) and amounted to €1,626.5 mln, compared to €1,434.0 mln in 2020. Social contributions increased by €281.2 mln (+16.9%) and amounted to €1,947.8 mln, compared to €1,666.6 mln in 2020. Capital transfers increased by €15.6 mln (+24.8%) and amounted to €78.4 mln, compared to €62.8 mln in 2020. Current transfers increased by €35.6 mln (+28.8%) and amounted to €159.1 mln, compared to €123.5 mln in 2020. Revenue from the sale of goods and services increased by €14.2 mln (+3.4%) and amounted to €428.3 mln, compared to €414.1 mln in 2020. Property income increased by €15.6 mln (+18.5%) and amounted to €100.3 mln, compared to €84.7 mln in 2020.
Source: Cyprus News Agency