Cyprus government revenue up 18.9% in 9M07

The Cyprus Government general accounts have recorded a 18.9% YoY increase in revenue during the first nine months of the year to CYP 3.007 mln while total expenditure was up by a modest 6.1% YoY to CYP 2.700 mln, the Cyprus Statistics Department announced.

Cyprus thus has recorded a surplus of CYP 306.4 mln in the first nine months of 2007 compared to a deficit of CYP 16.7 mln in the corresponding period of 2006.

The main categories of revenue for the period July-September 2007 were: taxes on production and imports amounting to CYP 471,3 mln (+24.8% YoY), of which VAT was CYP 263.2 mln (+20% YoY). Taxes on income and wealth amounted to CYP 398,2 mln

(+34.6% YoY), while revenue from sales of goods and services decreased by 15.1% YoY.

The main categories of expenditure for the period July-September 2007 were: civil servants payroll costs amounting to CYP 325,7 mln (+5.7% YoY), social transfers of CYP 263,4 mln (+13.6% YoY) and current transfers of CYP 80,8 mln (-11.4% YoY).

The nine month performance is in line with the forecast issued earlier by Finance Minister Michalis Sarris that the government will record a fiscal surplus in 2007 of around 1.5% of GDP.