Latest Figures: Fiscal Accounts of General Government, Jan-Sep 2019
The preliminary General Government fiscal results for the period of January-September 2019, which are prepared by the Statistical Service of Cyprus (CYSTAT), indicate a surplus of €944,1 mn (4,3% of GDP), as compared to a deficit of €955,3 mn for the corresponding period of 2018 (-4,5% of GDP). The January-September 2018 deficit includes the cost of the Cyprus Cooperative Bank-Hellenic Bank deal for the month of September 2018.
Total expenditure for the first nine months of 2019 reached €5.594,6 mn, which excluding the cost of the Cyprus Cooperative Bank-Hellenic Bank deal for the month of September 2018, corresponds to an increase of €538,0 mn (+10,6%) as compared to the relative period of the previous year.
Social benefits recorded an increase €232,3 mn (+12,1%) and reached €2.151,2 mn in January-September 2019 as compared to €1.918,9 mn in January-September 2018.
The compensation of employees (including imputed social contributions and pensions of civil servants) also recorded a considerable increase (€171,3 mn or 10,2%) and reached €1.849,4 mn (as compared to €1.678,1 mn in January-September 2018).
Intermediate consumption increased by €104,1 mn (+21,7%) and reached €584,0mn for the first nine months of 2019 as compared to €479,9 mn in the corresponding period of 2018.
Current transfers recorded an increased expenditure by €58,6 mn (+17,7%) and reached €389,1 mn, while payable interest increased by €58,4 mn during the period of January-September 2019 (+16,4%) and reached €414,0 mn.
Subsidies increased by €1,5 mn to reach €31,8 mn during the first nine months of 2019 as compared to €30,3 mn during the corresponding period of last year (+5,0%).
The capital account, which consists of investment and capital transfers, increased significantly in 2018 due to the deal of the Cyprus Cooperative Bank with the Hellenic Bank, incorporating fixed assets in the order of €668,8 mn into the State balance sheet. For the period January-September 2019, the corresponding capital expenditure was limited to €129,5 mn, a decrease by €804,5 mn, compared to the corresponding period of 2018.
Total revenue increased by 12,2%, that is €712,4 mn, to reach €6.538,7 mn during the period of January-September 2019, compared to €5.826,3 mn in the corresponding period of 2018.
Social contributions collected by the State during this period increased significantly (by €424,3 mn, that is +31,7%) to total €1.762,5 mn, compared to €1.338,2 mn in the corresponding period of 2018.
The revenue from taxes on income and wealth also increased significantly (by €141,1 mn, that is +10,4%) and reached €1.497,5 mn as opposed to €1.356,4 mn in the corresponding period of 2018. Capital transfers reached €156,1 mn, an increase of €69,1 mn, which corresponds to +79,4%, as opposed to the €87,0 mn received during the corresponding period of 2018.
Revenue received from taxes on production and imports recorded an increase of €50,2 mn (+2,1%) to reach €2.472,3 mn, as compared to €2.422,1 mn received in 2018. However, net VAT revenue (that is included in this category) registered an increase of €74,9 mn (+4,9%) and reached €1.592,4 mn in 2019, as compared to €1.517,5 mn in 2018.
Property income recorded a €21,2 mn increase (+29,2%) to reach €93,9 mn during the period of January-September 2019 (as compared to €72,7 mn in January-September 2018). Revenue for the sale of goods and services recorded an increase of €6,7 mn (+1,6%) and reached €415,1 mn as compared to €408,4 mn in the first nine months of 2018.
The only category to record a marginal decrease is that of current transfers, that were reduced by €0,2 mn (-0,1%) and were confined to €141,3 mn during the period of January-September 2019 as compared to €141,5 mn in the corresponding period of 2018.
Cyprus Fiscal Development (Post-programme Surveillance)