General Government surplus at 3.7% of GDP

Cyprus recorded a General Government surplus of Euros 769.7 million or 3.7% of GDP, in the period January-September 2018, according to data released Monday by the Statistical Service of Cyprus.

The surplus in the corresponding period of 2017 was (2.2% of GDP) or Euros 431.2 million for the corresponding period of 2017.

Expenditure up 2.4%

Total expenditure for the period of January-September 2018 recorded an increase of Euros 117.2 mn (2.4%) as compared to the corresponding period of 2017 and reached Euros 5,056.6 mn (Euros 4,939.4 mn in 2017).

Social benefits increased by Euros 55.5 mn (3.0%) to reach Euros 1,918.9 mn (Euros 1,863.4 mn in 2017) while the compensation of employees (including imputed social contributions and pensions of civil servants) registered an increase of Euros 53.0 mn (+3.3%) to reach Euros 1,678.1 mn (as opposed to Euros 1,625.1 mn in 2017). Intermediate consumption increased by Euros 30.7 mn (6.8%) to reach Euros 479.9 mn (Euros 449.2 mn in 2017).

Investment exhibited an increase of Euros 12.6 mn to reach Euros 227.8 mn. Excluding land annexations, that are included in investment, the increase reached Euros 17.5 mn (Euros 197.9 mn in 2018 as compared to Euros 180.4 mn in 2017). Subsidies also recorded an increase of Euros 2.6 mn and reached Euros 30.3 mn. Finally capital transfers increased by Euros 0.8 mn to reach Euros 35.5 mn (Euros 34.7 mn in 2017).

The two remaining expenditure categories recorded a decrease; payable interest decreased by Euros 37.8 mn thus registering an expenditure of Euros 356.6 mn, and current transfers decreased slightly by Euros 0.2 mn and recorded an expenditure of Euros 330.5 mn.

Revenue up 8.5% Total revenue increased by 8.5%, that is Euros 455.7 mn, to total Euros 5,826.3 mn during the period of January-September 2018 (Euros 5,370.6 mn in the corresponding period of 2017).

All revenue categories, except from the categories of property income and current transfers, exhibited an increase during this period.

Specifically, taxes on production and imports registered a 12.0% increase from 2017, that is an increase of Euros 260.2 mn (Euros 2,422.1 mn in 2018 as opposed to Euros 2,161.9 mn in 2017), of which net VAT revenue increased by 19.5%, which corresponds to Euros 247.6 mn, and reached a total of Euros 1,517.5 mn (in comparison to Euros 1,269.9 mn in 2017).

Social contributions collected during this period increased by 9.3% (or Euros 113.9 mn) and reached Euros 1,338.2 mn (as compared to Euros 1,224.3 mn in January-September 2017). Taxes on income and wealth increased by Euros 64.1 mn (5.0%) and reached Euros 1,356.4 mn during the first nine-month period of 2018 in comparison to Euros 1,292.3 mn in 2017, while revenue from the sale of goods and services increased by Euros 32.4 mn and totalled Euros 408.4 mn. Capital transfers received by the State increased by Euros 19.6 mn and reached Euros 87.0 mn.

Finally, property income recorded a decrease and was reduced to Euros 72.7 mn during the period of January-September 2018 (Euros 107.0 mn in 2017). Current transfers received decreased slightly by Euros 0.2 mn and totaled Euros 141.5 mn.

Source: Cyprus News Agency