Latest Figures: Fiscal Accounts of General Government, Jan-Aug 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €581,1 mn (2,8% of GDP) for the period of January-August 2020, as compared to a surplus of €620,8 mn (2,8% of GDP) that was recorded during the period of January-August 2019.
During the period of January-August 2020, total expenditure increased by €623,0 mn (+12,0%) and amounted to €5.822,2 mn, compared to €5.199,2 mn in the corresponding period of 2019.
It is noted, that this significant increase in expenditure is due to the support measures taken to address the effects of the Covid-19 pandemic on employment, which amounted to €457,6 mn.
Specifically, intermediate consumption increased by €268,6 mn (+44,5%) and amounted to €872,4 mn, compared to €603,8 mn in 2019. Social benefits increased by €42,6 mn (+2,4%) and amounted to €1.826,6 mn, compared to €1.784,0 mn in 2019. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €81,9 mn (+5,0%) and amounted to €1.719,2 mn, compared to €1.637,3 mn in 2019. Subsidies increased by €425,6 mn and amounted to €454,1 mn, compared to €28,5 mn in 2019. The increase in the specific category is mainly attributed to the support measures to enterprises due to the consequences of the Covid-19 pandemic. Current transfers increased by €27,2 mn (+7,9%) and amounted to €370,1 mn, compared to €342,9 mn in 2019.
The capital account decreased by €197,9 mn (-43,9%) to €252,5 mn, from €450,4 mn in 2019, This decrease is mainly due to other capital expenditure, which decreased by €264,4 mn (-84,3%) to €49,1 mn, from €313,5 mn in 2019. On the contrary, gross capital formation increased by €66,5 mn (+48,6%) and amounted to €203,4 mn, compared to €136,9 mn in 2019. Interest payable decreased by €25,0 mn (-7,1%) to €327,3 mn, from €352,3 mn in 2019.
During the period of January-August 2020, total revenue decreased by €578,9 mn (-9,9%) to €5.241,1 mn, compared to €5.820,0 mn in the corresponding period 2019.
All revenue categories for the period of January-August 2020 recorded a decrease.
In detail, taxes on production and imports decreased by €321,0 mn (-14,4%) to €1.912,6 mn, from €2.233,6 mn in 2019, of which net VAT revenue decreased by €187,5 mn (-13,1%) to €1.246,0 mn, compared to €1.433,5 mn in 2019. Revenue from taxes on income and wealth decreased by €169,2 mn (-12,2%) to €1.216,7 mn, from €1.385,9 mn in 2019. Social contributions decreased by €31,8 mn (-2,1%) to €1.494,1 mn, from €1.525,9 mn in 2019. Property income decreased by €36,8 mn (-55,3%) to €29,8 mn, from €66,6 mn in 2019. Revenue from the sale of goods and services decreased by €7,6 mn (-1,8%) to €414,3 mn, from €421,9 mn in 2019. Current transfers decreased by €9,0 mn (-7,5%) to €111,2 mn, from €120,2 mn in 2019.
Increased amounts in specific categories of expenditure are partly attributed to the implementation of the National Health System as of 01.03.2019.
Cyprus Fiscal Development (Post-programme Surveillance)