Latest Figures: Fiscal Accounts of General Government, Jan-Apr 2021
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €244,2 mn (1,1% of GDP) for the period of January-April 2021, as compared to a surplus of €44,3 mn (0,2% of GDP) that was recorded during the period of January-April 2020.
During the period of January-April 2021, total expenditure increased by €440,8 mn (+17,0%) and amounted to €3.038,3 mn, compared to €2.597,5 mn in the corresponding period of 2020.
It is noted, that this increase in expenditure is due to the support measures taken to address the effects of the Covid-19 pandemic.
Specifically, social benefits increased by €116,1 mn (+11,7%) and amounted to €1.111,8 mn, compared to €995,7 mn in 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €48,8 mn (+5,7%) and amounted to €911,0 mn, compared to €862,2 mn in 2020. Subsidies increased by €265,1 mn and amounted to €341,3 mn, compared to €76,2 mn in 2020. 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 €6,8 mn (+3,4%) and amounted to €207,6 mn, compared to €200,8 mn in 2020. Interest payable increased by €54,5 mn and amounted to €114,7 mn, compared to €60,2 mn in 2020.
The capital account decreased by €46,0 mn (-27,8%) to €119,7 mn, from €165,7 mn in 2020. This decrease is mainly due to gross capital formation, which decreased by €41,5 mn (-30,4%) to €95,2 mn, from €136,7 mn in 2020. Other capital expenditure decreased by €4,5 mn (-15,5%) to €24,5 mn, from €29,0 mn in 2020. Intermediate consumption decreased by €4,5 mn (-1,9%) to €232,2 mn, from €236,7 mn in 2020.
During the period of January-April 2021, total revenue increased by €152,2 mn (+5,8%) and amounted to €2.794,1 mn, compared to €2.641,9 mn in the corresponding period 2020.
In detail, taxes on production and imports increased by €96,4 mn (+10,1%) and amounted to €1.049,7, compared to €953,3 mn in 2020, of which net VAT revenue increased by €57,2 mn (+9,2%) and amounted to €676,3 mn, compared to €619,1 mn in 2020. Revenue from taxes on income and wealth increased by €15,5 mn (+2,6%) and amounted to €601,9 mn, compared to €586,4 mn in 2020. Social contributions increased by €55,1 mn (+7,1%) and amounted to €826,6 mn, compared to €771,5 mn in 2020. Capital transfers increased by €14,3 mn (+26,5%) and amounted to €68,3 mn, compared to €54,0 mn in 2020. Property income increased by €4,3 mn (+12,1%) and amounted to €39,6 mn, compared to €35,3 mn in 2020.
On the contrary, current transfers decreased by €6,9 mn (-11,8%) to €51,2 mn, from €58,1 mn in 2020. Revenue from the sale of goods and services decreased by €26,5 mn (-14,4%) to €156,8 mn, from €183,3 mn in 2020.
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.
Cyprus Fiscal Development (Post-programme Surveillance)