Government surplus up 70% in January to May, Cystat says

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By Stelios Orphanides

The government’s deficit rose from January to May by 70 per cent to €386.9 million compared with the same period the year before on increased revenue, the statistical service said.

Total revenue in the first five months of the year rose by an annual 7.5 per cent, or €217m, to €2.9 billion, Cystat said in a statement on its website on Friday. The higher revenue resulted mainly from a 21 per cent increase in indirect taxes to €1.3bn, including 15 per cent in value added tax (VAT) collection to €816.8m. Direct tax revenue rose by 8.6 per cent to €759.8m.

Total expenditure rose by 1.3 per cent from January to May to €2.6bn compared with the same 2017 period, Cystat said. The overall increase was on a €26m rise in wages in salaries to €698.2m, €19m in social security payments to €610.6m and €10m in pensions to €233.5m. It was partly offset by a €16m drop in capital expenditure, which fell to €59.7m €15m in current transfers to €573.4m.

In the first five months of the year, the government produced a primary surplus of €544.3m, 47 per cent higher than the year before. The primary balance is the difference between total revenue and spending excluding net interest payments on public debt, which fell by €6m to €159.6m.

The above budget data are not taking into account the bond issued by the government in April in favour of the Cyprus Cooperative bank. The government debt in May rose to by  €23.9m to €20.8bn in a month.

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About Author

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

  • Kevin Ingham

    A few mixed up words in that “report” ,but the bottom line is the bottom line “The government debt in May rose to by €23.9m to €20.8bn in a month

  • Philippos

    The “Headline” in context of the first paragraph of the article seem directly opposed to each other. What do you mean to tell us Mr Orfanides? (We’re headed for the toilet again or there is a little ray of sunshine?)

    • Jay Blanche

      best to stock up on loo roll, I’d hazard 😉

      • Philippos

        Isn’t it interesting that the Govt of the Republic does not issue loo paper overprinted ; “Republic of Cyprus – We Washed our hands”

  • Cydee

    Surplus of debt?

  • Jay Blanche

    Sort it out, CM.
    Start with the headline and see if you can make the first line of the article not say the opposite.

  • JS Gost

    Lol. One bank that has cost us €4 billion so far will wipe this ‘good’ news out for the next 4 years. Add then BoC and Hellenic going down the pan and that’s another 10 years of ‘profits’. Include the impending economic collapse and the whole story is laughable. The Emperor certainly looks good in his new cloths……

  • Wanderer

    So, time to cut some taxes back, right? (don’t hold your breath)