The deficit was on a 6.7% annual increase in spending in April to June to almost €1.8bn which an 11% increase in revenue to over €1.6bn was unable to offset, Cystat said in a statement on its website on Monday.

In the second quarter of 2016, the government posted a €188.7m deficit.

Revenue on production and imports rose an annual 13% to €710.9m in the second quarter and included €407.9m in value added tax revenue which rose 9.6%, Cystat said. Social security contributions rose 9% to €401.3m and revenue from the sale of services rose 26% to €147.5m, while revenue from income and wealth dropped 8.1% to €259.9m.

Social transfers and pensions rose an annual 4.4% in April to June to €685.8m, staff cost 6.7% to €558.3m and intermediate consumption rose 30% to €178m, Cystat said.

Source: Cyprus Mail