Latest Figures: Quarterly Accounts of General Government, 1st Quarter 2021
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €187,9 mn for the period of January-March 2021, as compared to a surplus of €226,9 mn that was recorded during the period of January-March 2020.
During the period of January-March 2021, total expenditure increased by €341,1 mn (+17,8%) and amounted to €2.258,6 mn, compared to €1.917,5 mn in the corresponding period of 2020.
Specifically among the main categories of expenditure, social transfers increased by €78,6 mn (+10,5%) and amounted to €828,1 mn, compared to €749,5 mn in the corresponding quarter of 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €30,1 mn (+4,6%) and amounted to €679,8 mn, compared to €649,7 mn in the first quarter of 2020. Subsidies increased by €264,4 mn and amounted to €274,8 mn, compared to €10,4 mn in the corresponding quarter of 2020.
The capital account decreased by €53,6 mn (-39,6%) to €81,9 mn (€57,0 mn capital formation and €24,9 mn capital transfers), from €135,5 mn (€114,3 mn capital formation and €21,2 mn capital transfers) in the first quarter of 2020. Intermediate consumption decreased by €11,9 mn (-6,9%) to €159,2 mn, from €171,1 mn in the corresponding quarter of 2020.
During the period of January-March 2021, total revenue decreased by €73,7 mn (-3,4%) to €2.070,7 mn, compared to €2.144,4 mn in the corresponding period 2020.
Specifically among the main categories of revenue, taxes on production and imports decreased by €13,0 mn (-1,7%) to €738,8 mn, from €751,8 mn in the corresponding quarter of 2020, of which net VAT revenue decreased by €2,6 mn (-0,6%) to €463,3 mn, from €465,9 mn in the first quarter of 2020. Revenue from the sale of goods and services decreased by €18,1 mn (-12,6%) to €125,3 mn, from €143,4 mn in the corresponding quarter of 2020. Social contributions decreased by €28,0 mn (-4,5%) to €588,5 mn, from €616,5 mn in the first quarter of 2020. Revenue from taxes on income and wealth decreased by €31,4 mn (-6,1%) to €480,4 mn, from €511,8 mn in the corresponding quarter of 2020.
On the contrary, capital transfers increased by €15,6 mn (+32,8%) and amounted to €63,2 mn, compared to €47,6 mn in in the first quarter of 2020.
The increase in expenditure and the decrease in revenue for January-March 2021 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.
Increased amounts in specific categories of expenditure and revenue are partly attributed to the full implementation of the National Health System as of 01.06.2020.