Cyprus budget surplus confirmed

The Cyprus budget surplus reported initially on a cash basis has bene confirmed with the release of data on the general government accounts for the first quarter that were compiled in accordance to E.U. concepts and definitions.

A surplus of CYP 113.8 mln was recorded in the first quarter, with revenue of CYP 828.8 mln and expenditure of CYP 715.0 mln.

Revenue rose by 36.2% compared with the same quarter of 2004, thanks in large part to the tax amnesty, while total expenditure rose by 8/8% in the same period.

the large increase in revenue was largely the result of the tax amnesty, although the Ministry of Finance reported that there was also an increase in VAT, income and wealth tax and capital transfers received.

Data in detail

Taxes on production and imports reached CYP 307.4 mln. Of this, VAT rose by 12.8% to reach CYP 181.8 mln, taxes on income and wealth rose by 34.9% to CYP 194.7 mln and

capital transfers reached CYP 71.0 mln (of which CYP 69.8 mln was the tax amnesty).

Social contributions rose by 6.9% to reach CYP 137.1 mln, while sales of goods and services rose by 6% to reach CYP 51.5 mln.

The main categories of expenditure for the first quarter of 2005 were: compensation of employees CYP 264.4 mln (5% increase), social transfers CYP 193.7 mln (22.4% increase), interest paid CYP 71.8 mln (29.3% decrease), intermediate consumption CYP 58.3 mln (10.6% decrease).