Government posts €62.5m fiscal surplus in H1

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By Stelios Orphanides

The general government generated a fiscal surplus of €62.5m on a cash basis in the first six months of the year mainly on increased revenue, which outstripped a rise in spending, against a €42.5m deficit a year before, the finance ministry said.

Total revenue rose 8.2 per cent year-on-year in H1, or €245m to over €3.2bn, the finance ministry said in a statement on its website. The increase resulted mainly from an increase in indirect tax revenue by €160m, to €1.4bn, which included a €98m increase in value added tax, to €802.5m.

Direct tax revenue dropped by €29m, to €822.7m, while social security contributions and non-tax revenue rose by €53m, to €563.2m, and €58, to €475.5m respectively.

Government spending rose an annual 3.8 per cent, or €116m, in the first six months of the year, to €3.2bn, the ministry said. The increase in spending was mainly on a €55m rise in interest payments, to €279.3m. This increase in interest payments appears to be related to the June government bond issue and debt buybacks as in January to May, interest payments had decreased by almost €1m compared to the respective period last year.

Spending on goods and services, wages and salaries, and current transfers, rose by €37m, to €190.6m, €23m, to €811.1m, and €13m, to €687.3m respectively, the ministry said. Subsidies dropped by €31m, to €39.1m, while pensions, social pensions, social security payments and non-allocated expenditure rose by €10, to €271.5m, €1m, to €32.5m, €2m, to €778.3m, and €4m, to €12.4m respectively.

The primary surplus, which is the difference between total revenue and spending excluding interest payments, rose by almost €111m, to €287.5, the ministry said.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Bob Ellis

    More money to waste vote buying in the run up to the election. If not, AKEL will blow it. Going on their track record the last time they were in charge, it would take them 8 days to wipe out this surplus considering they overspent by €10,000,000,000 in only 4 years….

  • Sink the EU

    Excellent! Good job!

  • Justy

    Now that we are in surplus territory how about rolling back some of the taxes that were imposed to meet the country’s bailout requirements? 10 cents a litre for fuel added overnight, 5% vat on refrigerated goods…..V.A.T increase from 17 to 20%? Just these three examples affect everyone in one way or another……or is the government going to just keep skimming off a nicely growing pot of cash? A roll-back on any one of the three examples would be nice……

  • almostbroke

    Nice little ‘vote buying ‘ pot , but is it real or virtual !!!!!!!!