The improvement in the public finances was mainly on increased revenue, which rose by €98m, to below €4.8bn, in the first eight months of the year, compared to the respective period of 2015, Cystat said in a statement on its website recently. The increase in revenue offset a €19m increase in public spending, to €4.7bn.

The rise resulted mainly from a €58m increase in indirect tax revenue, to €1.9bn, in January to August, including €30m from value added tax, and a €38m in direct tax revenue to €1.5bn compared to a year before, Cystat said. Social security contributions rose by €34m, to €759.9m.

The increase in spending due to a €31m increase in social security payments, to €1.1bn, a €27m rise in capital expenditure, to €156.7m, and a €26m increase in subsidies, to €83.8m, in the first three quarters of the year, compared to the respective period of 2015. The increase was partly offset by a €29m drop in pensions, to €398m, and a €21m drop in current transfers and non-allocated expenditure, to over €1bn and €19.7m, respectively. Wages and salaries, the largest chunk of budgeted public expenditure, rose by €9m, to almost €1.2bn.

The primary balance rose in January to August, to €524.6m, from €500.3m in the same period last year, Cystat said. The figure excludes the cost of servicing public debt which rose by €4m, to €401.7m.

Source: Cyprus Mail