Cyprus government records budget surplus in Jan-Sep

The Statistical Service has released budget figures confirming earlier statements by the Minister of Finance, Michalis Sarris, that the government is running a budget surplus.

On the basis of the preliminary data on the General Government accounts for the period January-September 2007, compiled in accordance to EU concepts and definitions, total revenue amounted to CYP 3,007.3 mln (CYP 3bln), marking a 18.9% increase on the corresponding period of 2006.

Total expenditure reached CYP 2,700.9 mln (CYP 2.7 bln), marking a 6.1% increase. The resulting surplus amounted to CYP 306.4 mln, compared with a deficit of CYP 16.7 mln deficit in the corresponding period of the previous year.

Mr Sarris said that Cyprus could record a budget surplus of around 1.5% of GDP in 2007.

The main categories of revenue for the period July-September 2007 were: taxes on production and imports CYP 471.3 mln (24.8% increase), of which VAT was CYP 263.2 mln (20% increase), taxes on income and wealth CYP 398.2 mln (34.6% increase).

Revenue from sales of government goods and services decreased by 15.1% compared with the corresponding period of the previous year.

The main categories of expenditure for the period July-September 2007 were: compensation of employees CYP 325.7 mln (5.7% increase), and social transfers CYP 263.4 mln (13.6% increase).

Current transfers reached CYP 80.8 mln (11.4% decrease).

Positive growth rates were observed in the categories of capital formation (11.6% increase) and intermediate consumption (2.9% increase).