Government generates €255m surplus in January

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By Stelios Orphanides

The government generated a fiscal surplus of €255m on a cash basis in January, compared to €168m in January last year, as the increase in revenue outpaced that of expenditure, the finance ministry said.

The increase in revenue in January was mainly on a €54m increase in value added tax (VAT) revenue to €191m, compared to a year before, while overall indirect tax revenue rose by €52m, to €296m, the ministry said in a statement on its website. Direct tax revenue rose by €44m, to €257m. Total revenue rose in the first month of the year by €119m, to €730m.

Total expenditure rose in January to €479m which is €32m more compared to government spending in January 2017, the ministry said. The higher public expenditure was mainly on a €13m increase in spending on goods and services, to €23m, €8m on interest payments, to €25m, and €7m on wages and salaries, to €135m. The increase was partly offset by a €6m drop in current transfers, to €119m.

The primary surplus, which is the difference between total revenue and spending excluding interest payments, rose to €279m in January, from €185m the previous year, the ministry said.

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About Author

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

  • Cydee

    Just think how wealthy we’d be if the NPLs were paid-up…

    • Wanderer

      You really think tax collectors make you wealthy? I guess burglars do too then.

  • Colin Evans

    How many more civil servants is that going to pay for?

    • Barry White

      How many of the new pensions is that going to pay for?

  • cyprus observer

    staggering….. just think how wealthy this island might be with proper fiscal management.

  • EGB

    I’m no economist but I can’t help but think that the increase in VAT revenue has, at least in small part, something to do with the increase in credit/debit card usage and maybe more the restrictions on large cash transactions for purchases together with the fact that you can’t just deposit €10,000 in the bank these days, no questions asked.

    • Wanderer

      Why would you want to give those bankrupt banks any of your money anyway?

  • Douglas

    Great news they can start paying back some of the money stolen from peoples bank accounts during the so called Bail In ?

  • Maria Tottnuttygirl Philippou

    €7m on who’s wages and salaries???

  • Maria Tottnuttygirl Philippou

    Try resurfacing some of the roads instead of just concentrating on the seafront road. We don’t all live along there. Our cars are ruined.

  • Pullaard

    Oh oh, shouldn’t publicise these things because the unions will be jumping up and down and demanding wage increases.

  • Bob Ellis

    Whilst highly commendable publishing such figures, being someone who lives in the real world I am just wondering if the next crisis will be late 2018 or early 2019.

  • Wanderer

    So, the tax hikes introduced in the last few years will be rescinded now, right? By the way, if there is surplus, why does the government keep mortgaging the unborn by selling more bonds?