articles | 05 September 2013

Cyprus fiscal deficit reduced to 2.17% of GDP in first seven months of 2013

Cyprus fiscal deficit reached 2.17% of GDP during the first seven months of 2013, compared to 3.44% during the same period in 2012.

According to data released on Wednesday by the Ministry of Finance, revenue between January–July 2013 recorded an increase of 0.20% compared to the corresponding period of 2012, while the expenditure decreased by 6.03%. Specifically, fiscal deficit for the period January-July 2013 reached €356.9 million, compared to a deficit of €615.29 million in the same period of 2012, decreased by €258.3 million.

Revenue increased during the first seven months of the year by 0.20% and reached €3.55 billion, compared to €3.54 billion the same period of 2012. Public expenditure decreased by 6.03% to 3.91 billion from €4.16 billion in the corresponding period of 2012. Tax revenue decreased during the first half of the year by 5.11%, reaching €2.9 billion, compared the same period last year, while revenue from direct tax recorded an increase of 1.01% reaching €1.06 billion. Indirect tax revenue, during the first half of the year decreased by 7.23%, reaching €1.33 billion, compared to the same period last year. Income tax revenue recorded a decrease of 9.12% and reached €582.3 million, compared to €640.78 million in the first half of 2011.

The primary balance showed a surplus of €74.1 million during the period January-July 2013, compared to deficit of €159.1 million the corresponding period of 2012.
According to the memorandum agreed with Cyprus’ international lenders, Cyprus will achieve a general government primary deficit not exceeding €395 million or 2.4% of GDP in 2013. For 2014 the government primary deficit should not exceed 4.25% of GDP, while in 2015, 2.1% of GDP.

Source: Financial Mirror

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