28/02/2020 14:23
The General Government surplus grew to 2.8% of GDP in 2019, according to the preliminary annual fiscal results prepared by the Statistical Service of Cyprus.
The preliminary General Government fiscal results, indicate a surplus of €603.0 mn (2.8% of GDP) for 2019, as compared to a deficit of €925,9 mn for 2018 (-4.4% of GDP).
Expenditure down 6.1%
Total expenditure for 2019 recorded a decrease of €558.1 mn (-6.1%) as compared to 2018 and were confined to €8,655.2 mn (€9,213.3 mn in 2018).
The capital account was the only expenditure category that recorded a decrease. Gross fixed capital formation recorded a decrease of €845.5 mn to record expenditure of €369.5 mn in 2019 as compared to €1,215.0 mn in 2018, while other capital investment was reduced by €614.6 mn and was confined to €354.2 mn as opposed to €968.8 mn in 2018. The main reason for this is the inclusion of the fiscal burden of the Cyprus Cooperative Bank Ltd – Hellenic Bank deal to the 2018 fiscal balance.
Intermediate consumption increased by €340.9 mn (+42.3%) to reach €1,146.4 mn in comparison to €805.5 mn in 2018, while the compensation of employees (including imputed social contributions and pensions of civil servants) increased by €251.8 mn (+10.1%) to reach €2,734.3 mn (€2,482.5 mn in 2018).
Social benefits registered an increase of €162.8 mn (+6.0%) to reach €2,872.1 mn (as opposed to €2,709.3 mn in 2018), while an increase was also recorded by current transfers that reached €569.0 mn as compared to €461.6 mn in 2018 (+23.3% or €107.4 mn).
Payable interest increased by €28.9 mn (+5.7%) to reach €539.2 mn as compared to €510.3 mn, which was the interest paid in 2018. Subsidies increased by €10.2 mn in 2019 and reached €70.1 mn as compared to €59.9 mn paid in 2018.
The increased expenditure in all categories is partly due to the implementation of the National Health System as of 01.03.2019.
Total revenue up 11.7%
Total revenue increased by 11.7%, that corresponds to increased revenue by €970.8 mn, to total €9,258.2 mn in 2019 as compared to €8,287.4 mn in 2018.
All revenue categories recorded an increase in 2019. Specifically, social contributions collected in 2019 exhibited a growth of €501.8 mn (+27.2%) and reached €2,348.3 mn (€1,846.5 mn in 2018). Revenue from the sale of goods and services increased by €204.0 mn (or 29.0%) to total €906.4 mn in 2019 as compared to €702.4 mn that were received in 2018.
Revenue from taxes on income and wealth increased by €155.4 mn (+8.1%) to reach €2,080.0 mn in 2019 as compared to €1,924.6 mn in 2018. Capital transfers received by the State were increased by €47.5 mn to total €172.2 mn in 2019, as the capital transfers received in 2018 totalled €124.7mn.
Property income reached €176.4 mn in 2019 to record an increased income by €37.1 mn (+26.6%) as compared to the €139.3 mn received in 2018. Current transfers exhibited a smaller increase of €13.8 mn (+6,2%) and reached €235.2 mn in 2019 (€221.4 mn in 2018).
Finally, taxes on production and imports registered a 0.3% increase from 2018, that is an increase of €11.2 mn to record a revenue of €3,339.7 mn in 2019 as opposed to €3,328.5 mn in 2018, of which net VAT revenue increased by 1.6%, which corresponds to €33.4 mn, and reached a total of €2,121.9 mn (as opposed to €2,088.5 mn in 2018).
The increased expenditure in all categories is partly due to the implementation of the National Health System as of 01.03.2019.
The preliminary fiscal balance does not include EU Funds flow adjustments, since the final result of their evaluation is still pending.