General Government surplus increases in first four months

The General Government surplus increased to Euros 547,1 mn or 2.5% of GDP between January and April 2019, compared with a surplus of Euros 426,9 mn or 2.1% of GDP in the same period of 2018, according to the preliminary fiscal results published by the Statistical Service of Cyprus on Friday.

Total expenditure in the first four months of 2019 increased by Euros 100,2 mn (+4.8%) compared with the same period of 2018 and reached Euros 2.189,6 mn (Euros 2.089,4 mn in 2018).

The compensation of employees (including imputed social contributions and pensions of civil servants) recorded the biggest increase with Euros 48,4 mn and reached Euros 787,0 mn in January-April 2019 compared with Euros 738,6 mn in January-April 2018.

Intermediate consumption increased by Euros 35,7 mn and reached Euros 216,8 mn in the first four-months of 2019 from Euros 181,1 mn in the same period of last year. Current transfers also registered an increase of 19.4% or Euros 30,8 mn and reached Euros 189,2 mn from Euros 158,4 mn in 2018.

A smaller increase of Euros 11,5 mn was recorded in social benefits, reaching Euros 830,8 mn from Euros 819,3 mn in 2018, and subsidies, which increased by Euros 2,4 mn to reach Euros 14,8 mn from Euros 12,4 mn in January-April 2018. Payable interest increased by Euros 1,4 mn and reached Euros 94,0 mn compared with Euros 92,6 mn in 2018.

The remaining two expenditure categories, that concern capital, registered a decrease. Investment was down by Euros 26,6 mn and stood at Euros 43,3 mn compared with Euros 69,9 mn in the period of January-April 2018. Capital transfers also decreased by 3,4 mn to total Euros 13,7 mn from Euros 17,1 mn in 2018.

Total revenue increased by 8.8%, that is Euros 220,4 mn, to reach Euros 2.736,7 mn during the period of January-April 2019 (Euros 2.516,3 mn in the corresponding period of 2018).

An important increase was recorded by the capital transfers received by the State, which were increased by Euros 78,5 mn and reached Euros 133,0 mn (Euros 54,5 mn in 2018).

Moreover, taxes on income and wealth increased by Euros 68,6 mn (+12,9%) and reached Euros 599,7 mn in January-April 2019 compared with Euros 531,1 mn received during the corresponding period of 2018.

Social contributions collected by the State during the period of January-April 2019 increased by 9.1% (or Euros 54,2 mn) to reach Euros 650,9 mn (Euros 596,7 mn during the first four months of 2018), and property income recorded a Euros 35,4 mn increase to register an income of Euros 83,0 mn during the same period (compared with Euros 47,6 mn in January-April of 2018).

On the contrary, revenue for the sale of goods and services recorded a decrease of Euros 12,1 mn and were confined to Euros 152,9 mn during the period of January-April of the current year, since this revenue totaled Euros 165,0 mn during the corresponding period of last year.

A small reduction amounting to Euros 2,3 mn (-0.2%) was recorded by the revenue received from taxes on production and imports, which amounted to Euros 1.062,4 mn during the first four months of 2019. However, net VAT revenue registered an increase of Euros 8,0 mn and reached Euros 690,9 mn in 2019, compared with Euros 682,9 mn received in 2018.

Finally, current transfers received were decreased slightly by Euros 1,9 mn and stood at Euros 54,8 mn during the first four months of 2019.

Source: Cyprus News Agency