Cyprus' deficit fell by €147.81 million at the end of November, down to 3.63% of Gross Domestic Product (GDP), from 4.16% in the corresponding period of 2012, based on recent data released by the Ministry of Finance.
The budget deficit declined between January and November 2013 to €596.45 million from €744.26 million in the corresponding period of the previous year. The primary balance, from which the cost of servicing the public debt is excluded, presented from January until November a deficit of €61.39 million, compared with a deficit of €155.25 million in the corresponding period of 2012. At the end of 2013, Cyprus should retain a primary deficit of €395 million or 2.4% of GDP.
Revenue fell in the period January-November 2013 by 1.93% to €5.49 billion from €5.60 billion, while government spending fell by 3.54%, to €6.19 billion from €6.42 billion. Figures also showed that tax revenue fell between January and November 2013, by 5.21% to €4.68 billion from €4.94 billion in the same period of 2012. Revenue from direct taxes rose by 2.10%, to €1.79 billion from €1.75 billion, while revenue from indirect taxes declined by 7.99% to €2.08 billion, compared with €2.27 billion in the first eleven months of 2012.
A decrease of 19.09% was recorded between January and November 2013 in income tax revenue, which fell to €938 million from €1.16 billion in the corresponding period of 2012, while revenue from excise taxes increased by 0.31%, to €560.78 million compared with €559.04 million. VAT revenue fell by 7.66% to €1.25 billion from €1.35 billion in the corresponding period of 2012. Current expenditure declined in the period January-November 2013 by 1.77% to €6.03 billion compared with €6.14 in the same period of the previous year, whereas spending on wages and salaries decreased by 7.25% to €1.52 billion from €1.64 billion. Payments to the Social Insurance Fund increased by 2.43% to €1.31 billion, compared with €1.28 billion, while spending on pensions and gratuities increased by 7.85% to €594.16 million from €550.90 million. Payments of interest rates on public debt declined between January and November 2013 by 9.16% to €535.06 million from €589.01 million in the corresponding period of 2012.