Cyprus records surplus in 1Q07

The Statistical Service announced that on the basis of the preliminary data on the General Government accounts for the period January-March 2007, total revenue amounted to

CYP938.4 mln (24.3% increase compare to the first quarter of 2006) while total expenditure reached CYP890.0 mln, (15.5% increase) resulting to a surplus of CYP48.4 mln or 0.07% of GDP as compared to a CYP15.6 mln or 0.02% of GDP deficit in the corresponding quarter of the previous year.

According to the Ministry of Finance and the latest EU forecasts, fiscal deficit

for 2007 is expected to reach 1.7% of GDP.

The main categories of revenue for the period January-March 2007 were: taxes on production and imports CYP413.6 mln (12.8% increase), of which VAT was CYP 235.9 mln (increase 12.3%), taxes on income and wealth CYP 262.0 mln (39.6% increase), social contributions CYP 171.6 mln (25.2% increase). The main categories of expenditure for the period January-March 2007 were: compensation of employees CYP 301.2 mln (7.6% increase), and social transfers CYP 239.3 mln (14.2% increase).