Latest Figures: Fiscal Accounts of General Government, Jan-Dec 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €1.059,0 mn (5,0% of GDP) for the period of January-December 2020, as compared to a surplus of €325,9 mn (1,5% of GDP) that was recorded during the period of January-December 2019.
During the period of January-December 2020, total expenditure increased by €1.029,5 mn (+11,5%) and amounted to €9.946,6 mn, compared to €8.917,1 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 €546,5 mn.
Specifically, intermediate consumption increased by €35,1 mn (+3,4%) and amounted to €1.056,6 mn, compared to €1.021,5 mn in 2019. Social benefits increased by €584,8 mn (+19,3%) and amounted to €3.619,0 mn, compared to €3.034,2 mn in 2019. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €159,4 mn (+5,8%) and amounted to €2.892,1 mn, compared to €2.732,7 mn in 2019. Subsidies increased by €508,1 mn and amounted to €578,2 mn, compared to €70,1 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. Current transfers increased by €20,7 mn (+3,7%) and amounted to €571,8 mn, compared to €551,1 mn in 2019.
The capital account decreased by €262,8 mn (-26,4%) to €734,2 mn, from €997,0 mn in 2019. This decrease is mainly due to other capital expenditure, which decreased by €326,9 mn (-72,0%) to €127,1 mn, from €454,0 mn in 2019. On the contrary, gross capital formation increased by €64,1 mn (+11,8%) and amounted to €607,1 mn, compared to €543,0 mn in 2019. Interest payable decreased by €15,7 mn (-3,1%) to €494,8 mn, from €510,5 mn in 2019.
During the period of January-December 2020, total revenue decreased by €355,3 mn (-3,8%) to €8.887,7 mn, compared to €9.243,0 mn in the corresponding period 2019.
In detail, taxes on production and imports decreased by €300,0 mn (-9,0%) to €3.029,1 mn, from €3.329,1 mn in 2019, of which net VAT revenue decreased by €165,4 mn (-8,0%) to €1.900,1 mn, compared to €2.065,5 mn in 2019. Revenue from taxes on income and wealth decreased by €31,7 mn (-1,5%) to €2.124,6 mn, from €2.156,3 mn in 2019. Property income decreased by €63,3 mn (-29,7%) to €150,0 mn, from €213,3 mn in 2019. Current transfers decreased by €9,9 mn (-4,2%) to €225,9 mn, from €235,8 mn in 2019.
On the contrary, social contributions increased by €25,8 mn (+1,1%) and amounted to €2.403,9 mn, compared to €2.378,1 mn in 2019. Revenue from the sale of goods and services increased by €13,4 mn (+1,6%) and amounted to €853,8 mn, compared to €840,4 mn in 2019. Capital transfers increased by €10,4 mn (+11,6%) and amounted to €100,4 mn, compared to €90,0 mn in 2019.
Increased amounts in specific categories of expenditure and revenue are partly attributed to the implementation of the first stage of the National Health System as of 01.06.2019 and its full implementation as of 01.06.2020.
Cyprus Fiscal Development (Post-programme Surveillance)