General Government Surplus Up By An Annual 0.5% In The First Five Months

02/07/2019

The General Government recorded a surplus of €517,7 mn or 2.4% of GDP from January until May 2019 compared with a surplus of €393,4 mn in the corresponding period of 2018 or 1.9% of GDP), preliminary fiscal results published on Friday, 28 June by the Statistical Service of Cyprus (CYSTAT) show.

Total expenditure in the first five months of 2019 recorded an increase of €131,2 mn (+4.9%) compared with the same period of 2018 and reached 2.824,4 mn (€2.693,2 mn in 2018).

The compensation of employees (including imputed social contributions and pensions of civil servants) recorded the biggest increase (€54,5 mn or 5.9%) and reached €975,1 mn in January-May 2019 compared with €920,6 mn in January-May 2018.

Intermediate consumption rose by €51,4 mn and reached €292,6 mn for the first five months of 2019 compared with €241,2 mn in the corresponding period of last year. Current transfers recorded an increased expenditure (by €36,1 mn) and reached €234,5 mn (compared with €198,4 mn in 2018).

Social benefits also recorded an increase of €34,1 mn to reach €1.074,7 mn from €1.040,6 mn in 2018.

A smaller increase was recorded in subsidies, which increased by €1,9 mn to reach €18,1 mn from €16,2 mn in January-May 2018.

On the other hand, payable interest decreased by €10,9 mn down to €146,5 mn compared with €157,4 mn in 2018.

A decrease was also recorded for the two remaining expenditure categories that concern capital. Investment fell by €30,0 mn to €65,5 mn from €95,5 mn during the period of January-May 2018. Excluding land annexations, that are included in investment, a drop of €31,6 mn is observed (€50,1 mn in 2019 compared with €81,7 mn in 2018). Furthermore, capital transfers also fell by €5,9 mn and totaled €17,4 mn compared with €23,3 mn in 2018.

Total revenue increased by 8.3% or €255,5 mn, to reach €3.342,1 mn from January until May 2019 compared with €3.086,6 mn in the corresponding period of 2018.

Revenue from taxes on income and wealth increased significantly by €83,0 mn and reached €702,1 mn in the first five months of 2019 from €619,1 mn in the same period of 2018. Social contributions collected by the State for the same period of 2019 also increased significantly by €82,2 mn to total €838,7 mn, from €756,5 mn in 2018.

An even greater increase of €85,2 mn was recorded in capital transfers received by the State, to reach €140,8 mn for the current year from €55,6 mn received in 2018.

Property income recorded a €25,5 mn increase and rose to €90,6 mn during the period of January-May 2019 compared with €65,1 mn in January-May 2018. Revenue for the sale of goods and services also increased by €17,0 mn to €224,5 mn in 2019 compared with €207,5 mn in 2018.

On the contrary, revenue received from taxes on production and imports decreased by €22,3 mn to €1.279,8 mn, from €1.302,1 mn in 2018. However, net VAT revenue (that is included in this category) rose by €2,2 mn and reached €819,4 mn in 2019, compared with €817,2 mn received in 2018.

Finally, current transfers received fell by €15,1 mn to €65,6 mn during the first five months of 2019.