Latest Figures: Quarterly Accounts of General Government, 4th Quarter 2020
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €568,9 mn for the period of October-December 2020, as compared to a deficit of €280,3 mn that was recorded during the period of October-December 2019.
During the period of October-December 2020, total expenditure increased by €178,9 mn (+6,2%) and amounted to €3.087,7 mn, compared to €2.908,8 mn in the corresponding period of 2019.
Specifically among the main categories of expenditure, social transfers increased by €210,4 mn (+22,2%) and amounted to €1.159,1 mn, compared to €948,7 mn in the corresponding quarter of 2019. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €44,8 mn (+5,1%) and amounted to €920,4 mn, compared to €875,6 mn in the fourth quarter of 2019. Subsidies increased by €58,2 mn and amounted to €96,5 mn, compared to €38,3 mn in the corresponding quarter of 2019.
The capital account decreased by €28,1 mn (-7,6%) to €340,5 mn (€302,8 mn capital formation and €37,7 mn capital transfers), from €368,6 mn (€321,3 mn capital formation and €47,3 mn capital transfers) in the fourth quarter of 2019. Intermediate consumption decreased by €54,7 mn (-15,3%) to €303,5 mn, from €358,2 mn in the corresponding quarter of 2019.
During the period of October-December 2020, total revenue decreased by €109,6 mn (-4,2%) to €2.518,9 mn, compared to €2.628,5 mn in the corresponding period 2019.
Specifically among the main categories of revenue, taxes on production and imports decreased by €130,0 mn (-16,0%) to €684,3 mn, from €814,3 mn in the corresponding quarter of 2019, of which net VAT revenue decreased by €87,9 mn (-18,7%) to €381,2 mn, from €469,1 mn in the fourth quarter of 2019. Revenue from the sale of goods and services decreased by €105,3 mn (-32,6%) to €217,5 mn, from €322,8 mn in the corresponding quarter of 2019.
On the contrary, social contributions increased by €36,5 mn (+5,2%) and amounted to €737,3 mn, from €700,8 mn in the fourth quarter of 2019. Revenue from taxes on income and wealth increased by €68,4 mn (+11,5%) and amounted to €663,6 mn, from €595,2 mn in the corresponding quarter of 2019.
The increase in expenditure and the decrease in revenue for October-December 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.
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.