The government last year generated a fiscal surplus on a cash basis of €360.7m or around 1.9% of the economy compared to a surplus of €82.4m in 2016 as higher revenue offset an increase in spending, the statistical service said.
Total revenue rose last year by €564m to over €7.2bn, Cystat said in a statement on its website on Wednesday. The increase was mainly on higher indirect tax revenue which rose by €305m to €2.9bn in 2017, which included a €220m increase in value added tax (VAT) revenue to €1.8bn. Direct tax revenue, rose by €41m to below €2.2bn.
Government spending rose in 2017 by €195m to well below €7bn, Cystat said. The increase in spending was mainly on a €84m increase in current transfers to €1.5bn accompanied by a €56m and €41m rise in wages and salaries and non-allocated expenditure to €1.8bn and €528.4m. The increase in spending more than offset the €52m reduction to €85.7m of subsidies paid out last year.
The primary surplus, which does not take the cost of servicing of public debt into account, rose to €840.6m in 2017 from €547.3 in 2016, Cystat said. Interest payments last year rose to €528.4m from €509.7m.
Source: Cyprus Mail