Latest Figures: Fiscal Accounts of General Government, Jan-May 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €528,8 mn (2,6% of GDP) for the period of January-May 2020, as compared to a surplus of €201,3 mn that was recorded during the period of January-May 2019 (0,9% of GDP).
FISCAL DEVELOPMENTS FOR MAY 2020
Total expenditure increased by €206,6 mn (+31,8%) and amounted to €856,3 mn from €649,7 mn in May 2019.
Among the main categories of expenditure, subsidies increased by €133,1 mn in May 2020 compared to May 2019 (amounted to €136,4 mn from €3,3 mn), intermediate consumption by 49,4% (amounted to €116,1 mn from €77,7 mn), current transfers by 19,2% (amounted to €50,8 mn from €42,6 mn) and social benefits by 4,3% (amounted to € 241,4 mn from € 231,4 mn).
Total revenue decreased by €249,6 mn (-38,5%) and limited to €399,5 mn from €649,1 mn in May 2019.
Among the main categories of revenue, total taxes on production and imports decreased by 44,2% in May 2020 compared to May 2019 (limited to €124,7 mn from €223,5 mn), net VAT revenue by 32,4% (limited to €86,9 mn from €128,5 mn), revenue from taxes on income and wealth by 17,3% (limited to €82,3 mn compared to €99,5 mn), social contributions by 39,7% (limited to €129,0 mn from €214,0 mn) and revenue from the sale of goods and services by 41,3% (limited to €44,9 mn from €76,5 mn).
The increase in expenditure and the decrease in revenue for the month of May 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-MAY 2020
During the period of January-May 2020, total expenditure increased by €323,0 mn (+10,3%) and amounted to €3.462,1 mn, compared to €3.139,1 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 €216,1 mn.
Intermediate consumption increased by €195,4 mn (+64,8%) and amounted to €497,0 mn, compared to €301,6 mn in 2019.
Social benefits increased by €56,2 mn (+5,3%) and amounted to €1.111,1 mn, compared to €1.054,9 mn in 2019.
Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €48,4 mn (+4,8%) and amounted to €1.055,7 mn, compared to €1.007,3 mn in 2019.
Subsidies increased by €194,5 mn and amounted to €212,6 mn, compared to €18,1 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.
Interest payable increased by €25,9 mn (+18,0%) and amounted to €169,4 mn, compared to €143,5 mn in 2019.
Current transfers increased by €41,0 mn (+18,0%) and amounted to €268,9 mn, compared to €227,9 mn in 2019.
The capital account decreased by €238,4 mn (-61,8%) and was limited to €147,4 mn compared to €385,8 mn in 2019, This decrease is mainly due to other capital expenditure, which decreased by €282,4 mn (-94,3%) and limited to €17,1 mn from €299,5 mn in 2019.
On the contrary, gross capital formation increased by €44,0 mn (+51,0%) and amounted to €130,3 mn, compared to €86,3 mn in 2019.
During the period of January-May 2020, total revenue decreased by €407,1 mn (-12,2%) and limited to €2.933,3 mn, compared to €3.340,4 mn in the corresponding period 2019.
Taxes on production and imports decreased by €200,3 mn (-15,8%) and limited to €1.070,6 mn, compared to €1.270,9 mn in 2019, of which net VAT revenue decreased by €86,1 mn (-10,8%) and limited to €711,6 mn, compared to €797,7 mn in 2019.
Revenue from taxes on income and wealth decreased by €43,7 mn (-6,2%) and limited to €655,8 mn, compared to €699,5 mn in 2019.
Social contributions decreased by €113,4 mn (-12,1%) and limited to €822,6 mn, compared to €936,0 mn in 2019.
Property income decreased by €58,8 mn (-92,0%) and limited to €5,1 mn, compared to €63,9 mn in 2019.
Capital transfers decreased by €0,7 mn (-1,2%) and limited to €55,8 mn, compared to €56,5 mn in 2019.
The remaining revenue categories increased during the period of January-May 2020.
Current transfers increased by €7,8 mn (+12,0%) and amounted to €72,8 mn, compared to €65,0 mn in 2019.
Finally, revenue from the sale of goods and services increased by €2,0 mn (+0,8%) and amounted to €250,6 mn, compared to €248,6 mn in 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)