Cyprus 2006 budget deficit at 1.4% of GDP

Well below Maastricht ceiling

 

The government budget deficit in Cyprus came in well below the Maastricht ceiling of 3% of GDP in 2006, recording a deficit of just 1.4% of GDP, according to preliminary data on the general government accounts compiled in accordance to E.U concepts and definitions

For the year 2006, total revenue amounted to CYP 3,600 mln (11% increase) and total expenditure amounted to CYP 3,715.1 mln (8.4% increase) resulting to a deficit of CYP 115.1 mln (1.4% of GDP), compared to a deficit of CYP 183.6 mln (2.3% of GDP) in the year 2005.

The Statistical Service reported that the main categories of revenue for the period January-December 2006 were: taxes on production and imports CYP 1,473.6 mln (10.9% increase), of which VAT was CYP 881.5 mln (increase 13.5%), taxes on income and wealth CYP 922.5 mln (26.5% increase), social contributions CYP 668.5 mln (2.8% increase).

The main categories of expenditure for the period January-December 2006 were: compensation of employees CYP 1,250.5 mln (7.8% increase), and social transfers CYP 1,021.8 mln (1.6% increase).

In the fourth quarter of 2006, total revenue amounted to CYP 1,070.6 mln while total expenditure reached CYP 1,182.4 mln.