Latest Figures: Fiscal Accounts of General Government, Jan-Jul 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €930,9 mn (4,6% of GDP) for the period of January-July 2020, as compared to a surplus of €385,7 mn (1,8% of GDP) that was recorded during the period of January-July 2019.
FISCAL DEVELOPMENTS FOR JULY 2020
Total expenditure increased by €109,1 mn (+14,0%) and amounted to €887,9 mn from €778,8 mn in July 2019.
Among the main categories of expenditure, subsidies increased by €117,5 mn in July 2020 compared to July 2019 (amounted to €120,9 mn from €3,4 mn), intermediate consumption by 18,3% (amounted to €129,4 mn from €109,4 mn), current transfers by 10,5% (amounted to €42,1 mn from €38,1 mn), compensation of employees (including imputed social contributions and pensions of civil servants) by 3,3% (amounted to €217,3 mn from €210,4 mn). On the contrary, social benefits decreased by 5,2% (€ 217,3 mn compared to € 229,3 mn).
Total revenue decreased by €157,3 mn (-17,0%) to €766,7 mn, from €924,0 mn in July 2019.
Among the main categories of revenue, total taxes on production and imports decreased by 17,9% in July 2020 compared to July 2019 (€300,9 mn compared to €366,6 mn), net VAT revenue by 9,6% (€209,3 mn compared to €231,6 mn), social contributions by 29,4% (€157,0 mn compared to €222,4 mn), revenue from taxes on income and wealth by 12,8% (€222,1 mn compared to €254,8 mn) and revenue from the sale of goods and services by 1,7% (€63,8 mn compared to €64,9 mn).
The increase in expenditure and the decrease in revenue for July 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-JULY 2020
During the period of January-July 2020, total expenditure increased by €588,6 mn (+12,8%) and amounted to €5.180,9 mn, compared to €4.592,3 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 €431,7 mn.
Intermediate consumption increased by €253,7 mn (+51,3%) and amounted to €748,4 mn, compared to €494,7 mn in 2019.
Social benefits increased by €51,8 mn (+3,3%) and amounted to €1.625,5 mn, compared to €1.573,7 mn in 2019.
Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €74,3 mn (+5,2%) and amounted to €1.499,8 mn, compared to €1.425,5 mn in 2019.
Subsidies increased by €402,9 mn and amounted to €427,9 mn, compared to €25,0 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 €45,2 mn (+15,1%) and amounted to €343,9 mn, compared to €298,7 mn in 2019.
The capital account decreased by €216,4 mn (-50,0%) to €216,1 mn, from €432,5 mn in 2019, This decrease is mainly due to other capital expenditure, which decreased by €271,7 mn (-86,7%) to €41,8 mn, from €313,5 mn in 2019. On the contrary, gross capital formation increased by €55,3 mn (+46,5%) and amounted to €174,3 mn, compared to €119,0 mn in 2019.
Interest payable decreased by €22,9 mn (-6,7%) to €319,3 mn, from €342,2 mn in 2019.
During the period of January-July 2020, total revenue decreased by €728,0 mn (-14,6%) to €4.250,0 mn, compared to €4.978,0 mn in the corresponding period 2019.
Taxes on production and imports decreased by €315,9 mn (-15,8%) to €1.682,8 mn, from €1.998,7 mn in 2019, of which net VAT revenue decreased by €167,9 mn (-13,0%) to €1.124,7 mn, compared to €1.292,6 mn in 2019.
Revenue from taxes on income and wealth decreased by €70,7 mn (-6,7%) to €984,3 mn, from to €1.055,0 mn in 2019.
Social contributions decreased by €290,8 mn (-21,7%) to €1.047,9 mn, from €1.338,7 mn in 2019.
Property income decreased by €53,6 mn (-81,1%) to €12,5 mn, from €66,1 mn in 2019.
Revenue from the sale of goods and services decreased by €1,3 mn (-0,4%) to €361,2 mn, from to €362,5 mn in 2019.
On the contrary, current transfers increased by €4,3 mn (+4,4%) and amounted to €102,9 mn, compared to €98,6 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)