The implementation rate of development expenditures from the state budget stood at 1% (pound 17.86 million) during the first month of 2024, according to a press release by the Treasury of the Republic of Cyprus, remaining at the average level of the last decade. Meanwhile, implementation concerning revenues remained at the same level as January last year, at 8%, but showed a decrease compared to expenditures, which stood at 4%, down from 6% in January 2023.
The Treasury reported that by the end of January 2024, total revenues amounted to pound 0.88 billion, corresponding to 8% of the state budget (2023: pound 0.8 billion, 8%), while actual expenditures amounted to pound 0.55 billion, representing an implementation rate of 4% (2023: pound 0.78 billion, 6%).
The implementation of the state budget concerning revenues remained at the same level as the corresponding period last year (2024: 8%, 2023: 8%), while it showed a decrease compared to expenditures (2024: 4%, 2023: 6%).
The Treasury noted that the decrea
sed implementation concerning expenditures is due to reduced outflows for loan repayments and interest payments (2024: pound 0.05 billion, 2023: pound 0.28 billion).
Development expenditures in focus
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According to the Treasury, the implementation of capital expenditures in January 2024 reached pound 5.9 billion. This was primarily attributed to investments in road infrastructure amounting to pound 3.4 billion and expenditures for the construction, expansion, and improvement of school buildings totaling pound 1.9 billion.
Additionally, implementation for co-funded and other financial expenses in January 2024 amounted to pound 3.2 billion. This was mainly due to the ‘Tuition and Child Nutrition Subsidy Scheme’, accounting for pound 1.6 billion, grants for Small and Medium-sized Enterprises competitiveness enhancement at pound 0.3 billion, ‘Savings – Home Upgrading’ scheme at pound 0.2 billion, and incentive scheme for Unemployed at pound 0.2 billion.
The implementation for gr
ants, contributions, and subsidies until the end of January 2024 reached pound 7 billion. This was primarily driven by grants to semi-governmental organizations amounting to pound 4.6 billion and the state’s contribution to the European Peace Facility totaling pound 1.1 billion, the European Investment Bank at pound 0.6 billion, and the European Development Fund at pound 0.1 billion.
The implementation of social benefits by the end of January 2024 amounted to pound 1.1 billion. This was mainly due to grants to non-governmental Organizations totaling pound 0.7 billion and expenditures for Cultural provisions at pound 0.4 billion.
The implementation of social benefits by the end of January 2024 amounted to pound 1.1 billion. This was mainly due to grants to Volunteer Organizations totaling pound 0.7 billion and expenditures for cultural provisions at pound 0.4 billion.
Revenue and Expenses overview
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In January 2024, there were notable changes in revenue and expenses compared to the
previous year. According to the press release, indirect taxes decreased by pound 0.01 billion (5%) primarily due to a reduction in VAT income by pound 0.02 billion (2024: pound 0.24 billion, 2023: pound 0.26 billion). On the other hand, direct taxes increased by pound 0.12 billion (28%) from the previous year, mainly due to income tax from both legal and natural persons (2024: pound 0.51 billion, 2023: pound 0.40 billion). However, there were no loan withdrawals by the end of January, both in 2024 and 2023.
Regarding the implementation of the state budget relative to expenses, there was a 9% increase (pound 0.02 billion) in expenditures related to salaries, pensions, and gratuities, rising from pound 0.23 billion in 2023 to pound 0.25 billion in 2024. Loan repayments and interest amounted to pound 0.05 billion (2023: pound 0.28 billion), with pound 0.04 billion (2023: pound 0.05 billion) attributed to loan interest and charges, and pound 0.01 billion (2023: pound 0.23 billion) to internal loan repayments.
F
urthermore, expenses on social benefits in January 2024 totaled pound 0.08 billion, remaining unchanged from the previous year (2023: pound 0.08 billion).
Source: Cyprus News Agency