General government budget posts €138.4m fiscal gap in Q2

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By Stelios Orphanides

The general government generated a fiscal deficit of €138.4m in the second quarter after posting a €200.9m surplus in the quarter before, the statistical service said.

The deficit was on a 6.7 per cent annual increase in spending in April to June to almost €1.8bn which an 11 per cent 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 per cent to €710.9m in the second quarter and included €407.9m in value added tax revenue which rose 9.6 per cent, Cystat said. Social security contributions rose 9 per cent to €401.3m and revenue from the sale of services rose 26 per cent to €147.5m, while revenue from income and wealth dropped 8.1 per cent to €259.9m.

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

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About Author

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

  • Sink the EU

    Better than last year; petroleum imports a factor?

  • SuzieQ

    CM, what is “intermediate consumption”, please? It must be relevant as it rose by 30%.

    • Sink the EU

      Really? You neighborhood hens don’t you have anything else to gossip about? You really don’t know what intermediate consumption is?

      • SuzieQ

        Well, as you’re chief cock perhaps you could enlighten us?

        • Eye on Cyprus

          Note to self: Don’t get smart with SQ!

    • Eye on Cyprus

      According to the OECD: “Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital; the goods or services may be either transformed or used up by the production process.”

      Put simply; if you make and sell a souvlaki, the pita, the meat, the salad and the wrapping paper are intermediate consumption; while the wear and tear on the utensils are consumption of fixed capital.

      The 30% rise may be accounted by the use of lamb or beef instead of horsemeat.

  • SuzieQ

    TB used to be called consumption, so not such a great idea perhaps? 😉

    • Eye on Cyprus

      Before my time. Well remembered, SQ. (No intention to ‘get smart;, honest!)

  • Sink the EU

    So you have no effing idea what intermediate consumption is, but it’s looking good to you and you want to buy shares in it. I hope you are not married to any misfortunate husband whom you surely drive him crazy with your nonsense on a daily basis.

    • Neroli

      Many of us on this forum are driven crazy on a daily basis with you’re drivel!

      • Sink the EU

        Good, because my plan is to further increase your discomfort. There is nothing I dislike more than serial ignoramuses.

        • Jay Bee

          Look in the mirror every morning for your daily ‘fix’ then……

    • Douglas

      I had the opinion that ‘Neroli’ comments were meant as light hearted humour and not to be taken seriously.
      Conceptually, the aggregate “intermediate consumption” is equal to the amount of the difference between gross output (roughly, the total sales value) and net output (gross value added or GDP). So it’s not exactly off the cuff to everyone’s comprehension, perhaps you lost your sense of humour with this one ?

  • Eye on Cyprus

    Anything for you.