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Economy

General Government surplus up by €245 m from January until June

July 31, 2019 at 6:14pm
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The General Government surplus increased by €245 m from January until June 2019, the Statistical Service said on Wednesday.

Preliminary fiscal results indicate a surplus of €572.3 m or 2.6% of GDP compared with a surplus of €326.9 m for the corresponding period of 2018 or 1.6% of GDP, said Cystat.

EXPENDITURE

Total expenditure for the first six months of 2019 recorded an increase of €197.0 m (+5.9%) compared with the same period of 2018 and reached 3.5328 b (€3.3358 m in 2018).

The compensation of employees (including imputed social contributions and pensions of civil servants) recorded the biggest increase (€104.9 m or 9.5%) and reached €1.2105 b in January-June 2019 compared with €1.1056 b in January-June 2018.

Social benefits also recorded a considerable increase due to the inclusion of the Health Insurance Organisation in General Government (€80.5 m or 6.1%) and reached €1.3938 b compared with €1.3133 b in 2018.

Intermediate consumption increased by €55. 4 m and reached €360.6 m for the first half of 2019 as compared to €305.2 m in the corresponding period of last year. Current transfers recorded an increased expenditure (by €34.0 m) and reached €263.6 m(compared with €229.6 m in 2018).

A smaller increase was recorded by subsidies, which increased by €1.5 m to reach €21.6 m compared with €20.1 m in January-June 2018.

A decrease was also recorded for the expenditure categories that concern capital. Investment was reduced by €64,3mn and was confined to €73,3mn compared with €137.6 m in the period of January-June 2018. Excluding land annexations, that are included in investment, a decrease of €60,5mn is observed (€56,0mn in 2019 compared with €116.5 m in 2018). Furthermore, capital transfers also decreased (by €2.9 m) and totaled €19.9 m (€22. 8 min 2018).

Finally, payable interest recorded a decrease of €12.1 m and was reduced to €189.5 m compared with €201,6mn in 2018.

REVENUE

Total revenue increased by 12.1%, that is €442.4 m, to reach €4.1051 b during the period of January-June 2019 (€3.6627 b in the corresponding period of 2018).

Social contributions collected by the State during the first half of 2019 increased significantly due to the inclusion of the Health Insurance Organisation in General Government (by €248.7 m) to total €1.1420 b(€893.3 m in the first half of 2018).

Capital transfers received by the State reached €141.3 m, an increase of €82.9 m, compared with €58.4 m received during the same period in 2018.

Revenue from taxes on income and wealth also increased significantly (by €78.8 m) and reached €802. 7 m in the first six months of 2019 compared with €723. 9 m in the corresponding period of 2018. Property income recorded a €24.0 m increase to reach €92.0 m during the period of January-June 2019 (compared with €68.0 m in January-June 2018).

A more confined increase was recorded by the revenue received from taxes on production and imports, which increased by €11.9 m to reach €1.5793 b, compared with the €1.5674 b received in 2018. However, net VAT revenue (that is included in this category) registered an increase of €35.2 m and reached €1.0174 b in 2019, compared with €982.2 m in 2018.

Revenue for the sale of goods and services also increased (by €10.2 m) and reached €265.7 m in 2019 compared with €255.5 m in 2018.

On the contrary, current transfers received were decreased by €14.1 m and were confined to €82.1 m during the period of January-June 2019.

(Cyprus News Agency)