State revenue declines 8.9% in Q1’06

…Deficit at CYP 15.6 mln

Total government revenue during the first quarter of 2006 fell 8.9% year-on-year to CYP 755.2 mln at a time when total expenditure increased by 7.8% y/y to CYP 770.8 mln, according to the Statistics Department based on General Government accounts for the period January – March 2006, compiled in accordance to EU standards.

This resulted in a deficit of CYP 15.6 mln or 0.2% of GDP compared to a surplus of CYP 113.8 mln during the first quarter of 2005.

The main categories of revenue for the period January – March 2006 were: taxes on production and imports CYP 336.7 mln (9.5% increase), of which VAT was CYP 210.0 mln (15.5% increase), taxes on income and wealth CYP 187.7 mln (3.6% decrease), social contributions CYP 137.1 mln (no change).

The main categories of expenditure for the first three months of 2006 were: compensation of employees CYP 279.8 mln (5.8% increase), and social transfers CYP 209.6 mln (8.2% increase).