General Government surplus up by an annual 0.5% in the first five months

The General Government recorded a surplus of Euros 517,7 mn or 2.4% of GDP from January until May 2019 compared with a surplus of Euros 393,4 mn in the corresponding period of 2018 or 1.9% of GDP), preliminary fiscal results published on Friday by the Statistical Service of Cyprus (CYSTAT) show.

EXPENDITURE

Total expenditure in the first five months of 2019 recorded an increase of Euros 131,2 mn (+4.9%) compared with the same period of 2018 and reached 2.824,4 mn (Euros 2.693,2 mn in 2018).

The compensation of employees (including imputed social contributions and pensions of civil servants) recorded the biggest increase (Euros 54,5 mn or 5.9%) and reached Euros 975,1 mn in January-May 2019 compared with Euros 920,6 mn in January-May 2018.

Intermediate consumption rose by Euros 51,4 mn and reached Euros 292,6 mn for the first five months of 2019 compared with Euros 241,2 mn in the corresponding period of last year. Current transfers recorded an increased expenditure (by Euros 36,1 mn) and reached Euros 234,5 mn (compared with Euros 198,4 mn in 2018).

Social benefits also recorded an increase of Euros 34,1 mn to reach Euros 1.074,7 mn from Euros 1.040,6 mn in 2018.

A smaller increase was recorded in subsidies, which increased by Euros 1,9 mn to reach Euros 18,1 mn from Euros 16,2 mn in January-May 2018.

On the other hand, payable interest decreased by Euros 10,9 mn down to Euros 146,5 mn compared with Euros 157,4 mn in 2018.

A decrease was also recorded for the two remaining expenditure categories that concern capital. Investment fell by Euros 30,0 mn to Euros 65,5 mn from Euros 95,5 mn during the period of January-May 2018. Excluding land annexations, that are included in investment, a drop of Euros 31,6 mn is observed (Euros 50,1 mn in 2019 compared with Euros 81,7 mn in 2018). Furthermore, capital transfers also fell by Euros 5,9 mn and totaled Euros 17,4 mn compared with Euros 23,3 mn in 2018.

REVENUE

Total revenue increased by 8.3% or Euros 255,5 mn, to reach Euros 3.342,1 mn from January until May 2019 compared with Euros 3.086,6 mn in the corresponding period of 2018.

Revenue from taxes on income and wealth increased significantly by Euros 83,0 mn and reached Euros 702,1 mn in the first five months of 2019 from Euros 619,1 mn in the same period of 2018. Social contributions collected by the State for the same period of 2019 also increased significantly by Euros 82,2 mn to total Euros 838,7 mn, from Euros 756,5 mn in 2018.

An even greater increase of Euros 85,2 mn was recorded in capital transfers received by the State, to reach Euros 140,8 mn for the current year from Euros 55,6 mn received in 2018.

Property income recorded a Euros 25,5 mn increase and rose to Euros 90,6 mn during the period of January-May 2019 compared with Euros 65,1 mn in January-May 2018. Revenue for the sale of goods and services also increased by Euros 17,0 mn to Euros 224,5 mn in 2019 compared with Euros 207,5 mn in 2018.

On the contrary, revenue received from taxes on production and imports decreased by Euros 22,3 mn to Euros 1.279,8 mn, from Euros 1.302,1 mn in 2018. However, net VAT revenue (that is included in this category) rose by Euros 2,2 mn and reached Euros 819,4 mn in 2019, compared with Euros 817,2 mn received in 2018.

Finally, current transfers received fell by Euros 15,1 mn to Euros 65,6 mn during the first five months of 2019.

Source: Cyprus News Agency