Latest Figures: Fiscal Accounts of General Government, Jan-May 2018
The preliminary General Government fiscal results for the first five months of 2018, which are prepared by the Statistical Service of Cyprus (CYSTAT), indicate a surplus of €386,9 mn (1,9% of GDP), as compared to a surplus of €115,9 mn for the corresponding period of 2017 (0,6% of GDP).
Total expenditure for the period of January-May 2018 recorded an increase of €55,9 mn (+2,1%) as compared to the corresponding period of 2017 and reached €2.686,2 mn (€2.630,3 mn in 2017).
The compensation of employees (including imputed social contributions and pensions of civil servants) increased by €33,6 mn (+3,8%) to reach €919,0 mn (€885,4 mn in 2017). Social benefits registered an increase of €39,9 mn (+4,0%) to reach €1.040,6 mn (as opposed to €1.000,7 mn in 2017) and current transfers increased by €6,1 mn to reach €198,4 mn (€192,3 mn in 2017). An increase was also recorded by capital transfers (€7,4 mn) that reached €23,3 mn (€15,9 mn in 2017). Subsidies recorded a small increase of €1,4 mn to reach €16,2 mn.
The remaining expenditure categories registered a decrease as compared to the expenditure amounts of the first five months of 2017. Payable interest recorded a decrease of €15,4 mn and was reduced €157,4 mn, while investments were decreased by €13,7 mn recording an expenditure of €95,5 mn. Excluding land annexations, that are included in investments, this decrease is reduced to €7,7 mn.
Finally, intermediate consumption was reduced by €3,4 mn as compared to the corresponding expenditure of last year (€235,8 mn in 2018 from €239,2 mn in 2017).
Total revenue increased by 11,9%, that is €326,9 mn, to total €3.073,1 mn during the first five months of 2018 (€2.746,2 mn in the corresponding months of 2017).
All revenue categories, except from the category of property income, exhibited an increase during the period of January-May 2018.
Specifically, taxes on production and imports registered a 17,2% increase from 2017, that is an increase of €189,9 mn (€1.296,5 mn in 2018 as opposed to €1.106,6 mn in 2017), of which net VAT revenue increased by 26,1%, which corresponds to €169,0 mn, and reached a total of €817,2 mn (in comparison to €648,2 mn in 2017).
Social contributions collected during this period increased by 9,9% (or €67,9 mn) and reached €756,5 mn (as compared to €688,6 mn in January-May 2017). Revenue from taxes on income and wealth increased by €58,1 mn or 10,4% and reached €619,1 mn during the first five months of 2018 in comparison to €561,0 mn in 2017, while current transfers received increased by €14,0 mn and reached €80,7 mn.
An important increase of €31,4 mn was recorded by capital transfers received by the State during this period, that reached €55,6 mn (€24,2 mn during January-May 2017).
Revenue from the sale of goods and services increased slightly by €1,0 mn and totalled €199,6 mn.
Finally, property income, the only category that recorded a decrease, was reduced to €65,1 mn during the period of January-May 2018 (€100,5 mn in 2017).
Cyprus Fiscal Development (Post-programme Surveillance)