Cyprus 2005 budget comes in at 2.4% of GDP

Well within Maastricht ceiling

According to preliminary data the general government budget deficit in 2005, compiled in accordance to E.U concepts and definitions, amounted to CYP 185.6 mln in 2005, or 2.4% of GDP.

The deficit was therefore well within the Maastricht criterion of a deficit of less than 3% of GDP.

Total revenue rose by 13.6% to CYP 3,273.7 mln, and total expenditure rose by 8.8% to CYP 3,459.3 mln.

The main categories of revenue were: taxes on production and imports CYP 1,355 mln (7.4% increase), of which VAT was CYP 776.5 mln (increase 15.5%), taxes on income and wealth CYP 729.9 mln (23% increase), social contributions CYP 650.1 mln (14.2% increase).

The main categories of expenditure for the year 2005 were: compensation of employees CYP 1,152.7 mln (5% increase), and social transfers CYP 1,005.73 mln (13.3% increase).

General government gross debt reached CYP 5,442.9 mln at the end of the year 2005 (70.3% of GDP), down in ratio terms from CYP 5,198.8 mln in the year 2004 (71.7% of GDP).

Under the Maastricht criterion for debt, if the ratio is above 60% it must be falling towards that level.

Fourth quarter spending rises

For the period October-December 2005, total revenue rose by 3.3% to CYP 979.7 mlnand expenditure rose by 12% to CYP 1,170.7 mln, producing a deficit of CYP 191 mln compared with a deficit of 97.4 mln during the fourth quarter of 2004.