Latest Figures: Fiscal Accounts of General Government, Jan-Feb 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a surplus of €212,3 mn (0,9% of GDP) for the period of January-February 2020, as compared to a surplus of €410,8 mn that was recorded during the period of January-February 2019 (1,9% of GDP).
Total expenditure for the period of January-February 2020 recorded an increase of €166,3 mn (+15,0%) as compared to 2019 and reached €1.277,4 mn (€1.111,1 mn in January-February 2019).
Intermediate consumption increased by €91,2 mn (+96,0%) to reach €186,2 mn in comparison to €95,0 mn in the period of January-February 2019. Payable interest also increased to reach €86,2 mn in 2020 as compared to €50,1 mn in the corresponding period of last year (€36,1 mn or 72,1% increase).
Social benefits increased by €35,5 mn (+8,6%) to reach €446,1 mn (as compared to €410,6 in January-February 2019).
The compensation of employees (including imputed social contributions and pensions of civil servants) increased by €26,1 mn (+6,6%) to reach €423,2 mn (€397,1 mn in January-February 2019).
Subsidies increased by €0,6 mn and reached €6,4 mn.
The remaining expenditure categories recorded a decrease. Current transfers were reduced by €18,7 mn (-15,4%) thus being confined to €102,4 mn during the first two months of 2020 (€121,1 mn in January-February 2019).
The capital account also recorded a decrease. Gross fixed capital formation recorded a €1,3 mn decrease and was reduced to €19,4 mn, as compared to €20,7 mn invested in 2019 during the said period. Other capital investment was reduced by €3,2 mn to record an expenditure of €7,5 mn as opposed to the €10,7 mn expenditure of January-February 2019.
Increased expenditure is partly attributed to the implementation of the National Health System as of 01.03.2019.
Total revenue decreased by 2,1% (€32,2 mn) to total €1.489,7 mn during the period of January-February 2020 as compared to €1.521,9 mn in January-February 2019.
Specifically, capital transfers received by the State were reduced by €121,5 mn to total €5,9 mn in 2020, as the capital transfers received in January-February 2019 totalled €127,4 mn.
Property income was reduced by €19,8 mn and was confined to €12,7 mn during the first two months of 2020, as compared to €32,5 mn that were received in the corresponding period of 2019.
Taxes on production and imports registered a €7,5 mn decrease (-1,4%) as compared to 2019 and were confined to €512,3 mn (€519,8 mn in January-February 2019), of which net VAT revenue decreased marginally by 0,1%, which corresponds to €0,2 mn, and recorded a slightly reduced revenue of €318,9 mn (as opposed to €319,1 mn in January-February 2019).
Revenue from taxes on income and wealth recorded a decrease of €4,5 mn (-1,2%) and were confined to €371,2 mn during the months of January and February 2020, as compared to €375,7 mn received during the corresponding months of 2019.
The negative deviation in some revenue categories is attributed to the collection of tax arrears in 2019.
On the contrary, the remaining revenue categories recorded an increase during the first two months of 2020.
Social contributions collected in 2020 exhibited a growth of 26,9% (€92,7 mn) and reached €437,3 mn (€344,6 mn in January-February 2019).
Revenue from the sale of goods and services increased by €26,9 mn (or 28,4%) to reach €121,7 mn in 2020 as compared to €94,8 mn that were collected in 2019.
Current transfers increased by €1,5 mn (+5,5%) to reach €28,6 mn during the months of January and February of 2020 as compared to €27,1 mn received in 2019.
Increased revenue is partly attributed to the implementation of the National Health System as of 01.03.2020.
Cyprus Fiscal Development (Post-programme Surveillance)