General Government’s deficit reaches Euros 1.050,9 mn in 2018

The preliminary General Government fiscal results indicate a deficit of Euros 1.050,9 mn (-5,1% of GDP) for 2018, as compared to a surplus of Euros 344,2 mn for 2017 (1,8% of GDP).

The results are prepared by the Statistical Service of Cyprus (CYSTAT) include the fiscal burden of Euros 1.662,0 mn, that was the result of the sale of the Cyprus Cooperative Bank Ltd (CCB) to the Hellenic Bank.

Excluding the fiscal burden of CCB, the fiscal balance would register a surplus of Euros 611,1 mn (+2,9% of GDP).

According to figures published today by Statistical Service, total expenditure for 2018, including the fiscal burden of CCB, recorded an increase of Euros 1.958,9 mn (+26,9%) as compared to 2017 and reached Euros 9.253,1 mn (Euros 7.294,2 mn in 2017).

Capital expenditure recorded an increase of Euros 1.657,2 mn and reached Euros 1.747,6 mn (Euros 90,4 mn in 2017).

Intermediate consumption increased by Euros 105,3 mn (+14,8%) to reach Euros 814,9 mn in comparison to Euros 709,6 mn during the corresponding period of the previous year, while the compensation of employees (including imputed social contributions and pensions of civil servants) increased by Euros 101,9 mn (+4,3%) to reach Euros 2.456,3 mn (Euros 2.354,4 mn in 2017).

Social benefits registered an increase of Euros 89,0 mn (+3,4%) to reach Euros 2.708,8 mn (as opposed to Euros 2.619,8 mn in 2017), and payable interest also increased by Euros 12,5 mn to reach Euros 515,1 mn as compared to Euros 502,6 mn which was the interest paid in 2017.

Current transfers increased by Euros 10,4 mn (+2,2%) to reach a total of Euros 474,0 mn in 2018, as opposed to a corresponding expenditure of Euros 463,6 mn in 2017. Subsidies were also increased by Euros 4,8 mn (8,7%) and reached Euros 59,9 mn (as compared to Euros 55,1 mn in 2017).

Capital investment is the only expenditure category that recorded a decrease of Euros 22,2 mn (-4,5%) to record an amount of Euros 476,5 mn in 2018 as compared to Euros 498,7 mn in 2017. Excluding land annexations, that are included in capital investment, this expenditure is decreased by Euros 54,0 mn, or 12,7% (Euros 371,2 mn in 2018 as compared to Euros 425,2 mn in 2017).

Total revenue increased by 7,4% that corresponds to an increase of Euros 563,8 mn, to total Euros 8.202,2 mn in 2018 (Euros 7.638,4 mn in 2017).

Most of the revenue categories exhibited an increase in 2018. Specifically, taxes on production and imports registered a 7,9% increase from 2017, that is an increase of Euros 241,3 mn (Euros 3.297,6 mn in 2018 as opposed to Euros 3.056,3 mn in 2017), of which net VAT revenue increased by 12,3%, which corresponds to Euros 228,1 mn, and reached a total of Euros 2.079,5 mn (as opposed to Euros 1.851,4 mn in 2017).

Social contributions collected during 2018 increased by 7,8% (or Euros 133,2 mn) and reached Euros 1.842,8 mn (as compared to Euros 1.709,6 mn in 2017). Revenue from taxes on income and wealth increased by Euros 90,5 mn or 4,9% and reached Euros 1.925,9 mn in 2018 in comparison to Euros 1.835,4 mn in 2017, while capital transfers received by the State were increased by Euros 78,0 mn to reach Euros 167,2 mn (Euros 89,2 mn in 2017).

The revenue from the sale of goods and services increased by Euros 51,8 mn (or 8,9%) and totalled Euros 633,0 mn, while the smallest increase was recorded by current transfers received that reached Euros 229,1 mn in 2018 (Euros 218,9 in 2017).

The only revenue category that registered a decrease was that of property income, which decreased by Euros 31,9 mn and were confined to Euros 115,9 mn in 2018 (as opposed to Euros 147,8 mn in 2017).

Source: Cyprus News Agency