articles | 21 October 2015

Budget surplus declines due to reduced revenue

Cyprus general government generated €11.6m budget surplus or 0.07% of GDP for the period of January-August 2015, compared to a €151.2m in the corresponding period of 2014, due to reduced government revenue.

According to data released by the Ministry of Finance, the primary surplus stood at €364.9 ml compared with a €507.2 ml surplus in 2014. Public revenue for January – August 2015 reached €4.17 billion, up by 2.22% compared with €4.27 bl in the corresponding period of 2014.

Current revenue declined by 1.46% to €4.12 bl compared with €4.18 bl in the corresponding period of 2014. Tax revenue accelerated by 0.41% to €3.57 bl compared with €3.55 bl in January – August 2014.

Revenue from income tax in the eight months of 2015 increased by 4.41% reaching €728.5 ml compared with €699.7 ml in the corresponding period of 2014. Other direct taxes however declined by 13.17% to €591 ml compared with €680.6 ml in 2014.

Indirect taxes in January – August 2015 reached €1.6 bl marking an increase of 2.98% compared with €1.55 bl in the same period of 2014, while import taxes declined by 32% to €20.58 ml compared with €30.22 ml in January – August 2014.

Other indirect taxes accelerated by 3.67%, reaching €1.58 bl compared with €1.52 bl in January – August 2014.

Excise taxes in January – August 2015 reached €414.45 ml, marking an increase of 0,53%, compared with €412.4 million in the corresponding period of 2014.

Revenue from Value Added Tax in January – August 2015 accelerated by 2.7% to €932.2 million, compared with €907.8 million in the eight months of 2014. Revenue from other taxes increased by 14.38% to €233.7 ml compared with €204.3 ml.

Contributions to Social Security Funds accelerated by 4.71% to €651.6 ml compared with €622.2 ml in January – August 2014.

Non tax revenue declined by 12.1% to €551.7 ml compared with €627.6 ml in January – August 2014. Grants slumped by 40.8% to €48.7 ml compared with €82.4 ml in January – August 2014.

Expenditure up by 1.09%

General Government expenditure for the period of January – Augusta reached €4.16 bl, marking an increase of 1.09% compared with €4.11 bl in the corresponding period of 2014, whereas current expenditure increasing by 1.08% reaching €4.04 bl.

Wages and Salaries increased by 1.94% reaching €1.09 bl compared with €1.06 bl in January – August 2014, whereas good and services purchases declined to €229.67 ml marking a 1.16% reduction compared with January – August 2014.

Subsidies for the period of January – August 2015 accelerated by 2.40% reaching €54.5 ml compared with €52.2 ml in the corresponding period of 2014. Debt servicing expenditure declined by 0.75% to €353.7 copmared with €356 ml in January – August 2014.

January – August contributions to Social Security Funds declined by 3.71% to €961.4 ml compared with €998.5 ml in the corresponding periof of 2014. On the other hand pension and gratitudes increased by 3.57% to €379.2 ml compared to €366.2 ml in January – August 2014.

Social pensions increased by 0.44% amounting to €41.6 ml comapred with €41.4 ml in January– August 2014.

Current transfers, that include welfare provisions and grants to local authorities, accelerated by 10.34% reaching €952,2 ml compared with January – August 2014 €863 ml.

Public investments in January – August 2015 reached €113.4 ml, marking an increase of 1.57% compared with €111.7 ml in January – August 2014.

Source: Famagusta Gazette

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