Latest Figures: Fiscal Accounts of General Government, Jan-Apr 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €72,7 mn (0,4% of GDP) for the period of January-April 2020, as compared to a surplus of €201,9 mn that was recorded during the period of January-April 2019 (0,9% of GDP).
FISCAL DEVELOPMENTS FOR APRIL 2020
Total expenditure increased by €127,9 mn (+22,8%) and amounted to €688,1 mn from €560,2 mn in April 2019.
Among the main categories of expenditure, social benefits increased by €9,6 mn (+4,5%) and amounted to €222,7 mn, subsidies increased by €60,6 mn and amounted to €65,8 mn and current transfers increased by €31,4 mn (+98.1% ) and amounted to €63,4 mn in April 2020.
Total revenue decreased by €244,1 mn (-35,1%) and fell to €451,2 mn from €695,3 mn in April 2019.
Among the main categories of revenue, taxes on production and imports fell by 32,2% (reduced to €195,3 mn from €287,9 mn in 2019), net VAT revenue decreased by 16,5% (reduced to €155,5 mn from €186,3 mn in 2019), revenue from taxes on income and wealth recorded a decrease in the order of 31,0% (reduced to €72,7 mn compared to €105,3 mn in 2019) and social contributions decreased by 40,3% (reduced to €121.9 mn from €204.1 mn in 2019).
The increase in expenditure and the decrease in revenue for the month of April 2020 are mainly due to the measures taken to support enterprises and the suspension of various sectors of the economy, respectively, as a result of the covid-19 pandemic.
FISCAL DEVELOPMENTS FOR JANUARY-APRIL 2020
Total expenditure for the first four months of 2020 increased by €117,1 mn compared to the corresponding period of 2019 and amounted to €2.606,5 mn from €2.489,4 mn (+4,7%).
Intermediate consumption increased by €157,0 mn (+70,1%) and amounted to €380,9 mn compared to €223,9 mn in 2019.
Interest payable also increased to €84,9 mn in the first four months of 2020, from €82,7 mn in the corresponding period of last year (increase of €2,2 mn or 2,7%).
Social benefits increased by €46,2 mn (+5,6%) and amounted to €869,7 mn (from €823,5 mn in 2019).
Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €45,4 mn (+5,7%) and amounted to €848,1 mn (from €802,7 mn in the corresponding period of 2019).
Subsidies increased by €61,4 mn and amounted to €76,2 mn (from €14,8 mn in the corresponding period of 2019). The increase in the specific category is partly attributed to the support measures to enterprises due to the consequences of the covid-19 pandemic.
Current transfers increased by €32,8 mn (+17,7%) and amounted to €218,1 mn (from €185,3 mn for the period of January-April 2019).
The capital account decreased during the period January-April 2020 and was limited to €128,6 mn compared to €356,5 mn in the corresponding period of last year. This decrease is mainly due to the decrease in the category of “Other capital expenditure”, which amounted to €15,5 mn for 2020 compared to €296,6 mn in the corresponding period of 2019.
On the contrary, gross capital formation increased by €53,2 mn in the period January-April 2020 and amounted to €113,1 mn compared to €59,9 mn in 2019.
Total revenue decreased by 5,9% (€157,5 mn) and were limited to €2.533,8 mn during the period of January-April 2020 (from €2.691,3 mn during the corresponding period of 2019).
Taxes on production and imports decreased by €101,5 mn (-9,7%) compared to 2019 and were reduced to €945,9 mn (from €1.047,4 mn in 2019), of which net VAT revenue decreased by 6,6%, corresponding to €44,5 mn and was limited to €624,7 mn in 2020 (from €669,2 mn during the first four months of 2019).
Revenue from taxes on income and wealth recorded a decrease of €26,5 mn (-4,4%) and amounted to €573,5 mn in 2020, compared to €600,0 mn during the first four months of 2019.
Social contributions decreased by 3,9% (or €28,4 mn) and amounted to €693,6 mn (from €722,0 mn in 2019).
Property income decreased by €42,2 mn (-90,0%) and limited to €4,7 mn, compared to €46,9 mn during the first four months of 2019.
The remaining revenue categories increased during the period of January-April 2020.
Revenue from the sale of goods and services increased by €33,6 mn (+19,5%) and amounted to €205,7 mn in 2020 compared to €172,1 mn in 2019.
Capital transfers increased by €4,1 mn and amounted to €52,8 mn in 2020 (as opposed to €48,7 mn during the period of January-April 2019).
Finally, current transfers increased by €3,4 mn (+6,3%) for the first four months of 2020 and amounted to €57,6 mn compared to €54,2 mn in the corresponding period of 2019.
Increased amounts in specific categories of revenue and expenditure are partly attributed to the implementation of the National Health System as of 01.03.2019.
Cyprus Fiscal Development (Post-programme Surveillance)