30/09/2004 14:10
The latest official data on the Cyprus fiscal deficit have showed a significant improvement, which boost expectations for an entry in the Exchange Rate Mechanism 2 soon. According to CYSTAT data released on Thursday, the fiscal deficit for January-June 2004 stood at £88 million or 1.2% of GDP.
Same data reported that the fiscal deficit for April-June was lower by £10 million compared to January-March. The fiscal deficit for the second quarter of 2004 dropped to £39.1 million against £48.9 million in the first quarter.
The improvement in the fiscal indices for the second quarter increased the state revenues by £66.3 million (10.9%) compared to the first quarter and restricted the increase in expenditure by £56.5 million (8.6%).
The total state revenues for the first half of 2004 reached £1,283.1 million and the total expenditure stood at £1,371.1 million. It is worth noting that the figures for the first half of 2003 had not been released for comparison purposes. The figures concerning the period of January-May 2004 and 2003, however, showed that the fiscal deficit for the same period had dropped from £156.9 million to £74.1 million.
This improvement in the fiscal indices is attributable to the decision not to carry out a large part of the development budget for January-May.
The increase in state revenues is related to the acceleration of the growth rate in the second quarter of 2004 to 4.1% from 3.4% in the first quarter and the corresponding period of 2003. This is mostly attributable to the improvement in the sectors of “constructions, the retail and wholesale trade, the asset management, tourism, the financial organizations and manufacturing”.
Same data reported that the fiscal deficit for April-June was lower by £10 million compared to January-March. The fiscal deficit for the second quarter of 2004 dropped to £39.1 million against £48.9 million in the first quarter.
The improvement in the fiscal indices for the second quarter increased the state revenues by £66.3 million (10.9%) compared to the first quarter and restricted the increase in expenditure by £56.5 million (8.6%).
The total state revenues for the first half of 2004 reached £1,283.1 million and the total expenditure stood at £1,371.1 million. It is worth noting that the figures for the first half of 2003 had not been released for comparison purposes. The figures concerning the period of January-May 2004 and 2003, however, showed that the fiscal deficit for the same period had dropped from £156.9 million to £74.1 million.
This improvement in the fiscal indices is attributable to the decision not to carry out a large part of the development budget for January-May.
The increase in state revenues is related to the acceleration of the growth rate in the second quarter of 2004 to 4.1% from 3.4% in the first quarter and the corresponding period of 2003. This is mostly attributable to the improvement in the sectors of “constructions, the retail and wholesale trade, the asset management, tourism, the financial organizations and manufacturing”.
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