Latest Figures: Fiscal Accounts of General Government, Jan-May 2021
The preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT) indicate a deficit of €512,2 mn (2,3% of GDP) for the period of January-May 2021, as compared to a deficit of €368,6 mn (1,8% of GDP) that was recorded during the period of January-May 2020.
During the period of January-May 2021, total expenditure increased by €467,3 mn (+13,5%) and amounted to €3.930,2 mn, compared to €3.462,9 mn in the corresponding period of 2020.
It is noted, that the increase in specific expenditure categories is due to the support measures taken to address the effects of the Covid-19 pandemic.
Specifically, social benefits increased by €161,3 mn (+12,7%) and amounted to €1.432,1 mn, compared to €1.270,8 mn in 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €65,4 mn (+6,1%) and amounted to €1.139,9 mn, compared to €1.074,5 mn in 2020. Subsidies increased by €218,4 mn and amounted to €431,0 mn, compared to €212,6 mn in 2020. The increase in the specific category is mainly attributed to additional support measures to enterprises due to the continuance of the Covid-19 pandemic. Current transfers increased by €12,9 mn (+5,1%) and amounted to €265,6 mn, compared to €252,7 mn in 2020. Interest payable increased by €50,2 mn (+34,1%) and amounted to €197,5 mn, compared to €147,3 mn in 2020.
On the contrary, the capital account decreased by €34,4 mn (-17,9%) to €157,5 mn, from €191,9 mn in 2020. In detail, gross capital formation decreased by €29,0 mn (-18,3%) to €129,7 mn, from €158,7 mn in 2020 and other capital expenditure decreased by €5,4 mn (-16,2%) to €27,8 mn, from €33,2 mn in 2020. Intermediate consumption decreased by €6,6 mn (-2,1%) to €306,6 mn, from €313,2 mn in 2020.
During the period of January-May 2021, total revenue increased by €323,7 mn (+10,5%) and amounted to €3.418,0 mn, compared to €3.094,3 mn in the corresponding period 2020.
In detail, taxes on production and imports increased by €160,6 mn (+14,5%) and amounted to €1.270,3, compared to €1.109,7 mn in 2020, of which net VAT revenue increased by €111,7 mn (+15,9%) and amounted to €814,7 mn, compared to €703,0 mn in 2020. Revenue from taxes on income and wealth increased by €34,9 mn (+5,2%) and amounted to €702,6 mn, compared to €667,7 mn in 2020. Social contributions increased by €117,8 mn (+12,8%) and amounted to €1.039,6 mn, compared to €921,8 mn in 2020. Capital transfers increased by €17,6 mn (+31,7%) and amounted to €72,9 mn, compared to €55,3 mn in 2020. Property income increased by €3,9 mn (+9,0%) and amounted to €47,5 mn, compared to €43,6 mn in 2020. Current transfers increased by €11,6 mn (+15,9%) and amounted to €84,6 mn, compared to €73,0 mn in 2020.
On the contrary, revenue from the sale of goods and services decreased by €22,7 mn (-10,2%) to €200,5 mn, from €223,2 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)