Latest Figures: Fiscal Accounts of General Government, Jan-June 2018
The preliminary General Government fiscal results for the first half of 2018, which are prepared by the Statistical Service of Cyprus (CYSTAT), indicate a surplus of €326,9 mn (1,6% of GDP), as compared to a surplus of €64,5 mn for the corresponding period of 2017 (0,3% of GDP).
Total expenditure for the period of January-June 2018 recorded an increase of €51,2 mn (+1,6%) as compared to the corresponding period of 2017 and reached €3.335,8 mn (€3.284,6 mn in 2017).
Social benefits increased by €34,0 mn (+2,7%) to reach €1.313,3 mn (€1.279,3 mn in 2017) while the compensation of employees (including imputed social contributions and pensions of civil servants) registered an increase of €27,2 mn (+2,5%) to reach €1.105,6 mn (as opposed to €1.078,4 mn in 2017). Intermediate consumption increased by €6,8 mn (+2,3%) to reach €305,2 mn (€298,4 mn in 2017).
Current transfers increased by €6,6 mn to total €229,6 mn for the period of January-June 2018 (€223,0 mn in 2017). An increase was also recorded by subsidies (€1,6 mn increase) and investments (€1,5 mn increase) that reached €20,1 mn and €137,6 mn respectively. Excluding land annexations, that are included in investments, the increase in investments is €6,5 mn (€116,5 mn in 2018 as compared to €110,0 mn in 2017).
The remaining expenditure categories recorded a decrease. The biggest decrease was recorded in payable interest, which decreased by €21,4 mn thus registering an expenditure of €201,6 mn. Capital transfers decreased by €5,1 mn recording a total expenditure of €22,8 mn (€27,9 mn in 2017).
Total revenue increased by 9,4%, that is €313,6 mn, to total €3.662,7 mn during the first half of 2018 (€3.349,1 mn in the corresponding period of 2017).
All revenue categories, except from the categories of property income and current transfers, exhibited an increase during the period of January-June 2018.
Specifically, taxes on production and imports registered a 12,6% increase from 2017, that is an increase of €176,0 mn (€1.567,4 mn in 2018 as opposed to €1.391,4 mn in 2017), of which net VAT revenue increased by 22,3%, which corresponds to €179,2 mn, and reached a total of €982,2 mn (in comparison to €803,0 mn in 2017).
Social contributions collected during this period increased by 8,8% (or €72,3 mn) and reached €893,3 mn (as compared to €821,0 mn in January-June 2017). Revenue from taxes on income and wealth increased by €61,6 mn or 9,3% and reached €723,9 mn during the first six months of 2018 in comparison to €662,3 mn in 2017, while capital transfers received by the State increased by €32,7 mn and reached €58,4 mn.
Revenue from the sale of goods and services increased by €6,9 mn and totalled €255,5 mn while current transfers decreased slightly by €0,5 mn and totaled €96,2 mn.
Finally, property income was reduced to €68,0 mn during the period of January-June 2018 (€103,4 mn in 2017).
Cyprus Fiscal Development (Post-programme Surveillance)