Finance Ministry: Government Generates Fiscal Surplus of €62.5Mn in H1 2017

01/08/2017

Cyprus government posted a €62.5 million fiscal surplus in the first half of 2017 compared with a deficit of €42.4 million in the respective period of 2016, the Finance Ministry said on Monday, July 31.

 

According to data released by the Finance Ministry, the government also generated a primary surplus of €287.5 million in the first half of 2017 compared with a surplus of €176.6 million in the first six months of last year.

 

The improvement in the public finances comes as the increase in public revenue outpaced the rise in expenditure due to the acceleration of economic activity.

 

Total revenue in the first half of 2017 amounted to €3.24 billion compared with €3.00 billion in the respective period of 2016.

 

Direct taxes in the first half of 2017 declined by €29 million, to €823 million from €852 million in 2016. However indirect taxes jumped by €160 million to €1.36 billion compared to €1.20 billion in the first half of 2016.

 

Revenue from Value Added Tax amounted to €802 million in the first half of 2017 compared with €704 million in the respective period of 2016.

Due to increased employment, social security contributions by employees accelerated to €563 million compared with €510 million in the first half of 2016.

 

Furthermore, non-tax revenue in the first half of 2017 increased by €58 million to €475 million compared with €417 million in the first six months of the previous year.

 

In the period of January – June 2017, total expenditure rose by 4% or €116 million amounting to €3.20 billion compared with €3.08 million in the first half of 2016.

 

Wages and salaries in the first half of 2017 amounted to €811 million up by €23 million compared with €788 million in the respective period of 2016, while social security payments increased marginally to €778 million.

 

Current transfers, which include social spending, increased by €13 million in the first half of 2017 amounting to €687 million from €673 million in the respective period of 2016.

 

Interest payments in the first half of 2017 increased by €55 million to €280 million from €224 million in the respective period of 2016.

 

Subsidies was the only state expenditure to register a decline in the first half of 2017 and amounted to €39 million compared with €70 million in the respective period of 2016.