Cyprus budget surplus turns to deficit in Q3

On the basis of the preliminary data on the general government accounts for the period July-September 2009, the public finances slipped into a small deficit of EUR 36.9 mln, having recorded a comfortable surplus of EUR 343.3 mln in the corresponding period of the previous year.
Total revenue in this period amounted to EUR 1,869.9 mln (a decrease of 15% compared with the corresponding period of 2008), while total expenditure reached EUR 1,906.8 mln (a 2.8% increase).
The main categories of revenue for the period July-September 2009 were as follows.
Taxes on production and imports EUR 678.1 mln (19.8% decrease). Of this total, VAT was EUR 418 mln (15.8% decrease) and taxes on income and wealth EUR 592.9 mln (23.6% decrease).
Revenue from sales of goods and services decreased by 8.5% compared with the corresponding period of the previous year.
The main categories of expenditure for the period July-September 2009 were as follows. Compensation of employees EUR 632.7 mln (2.6% increase), social transfers EUR 524.9 mln (1% decrease) and current transfers EUR 175.7 mln (12.8% increase).
Positive growth rates were observed in the categories of the capital formation (37.2% increase) and intermediate consumption (7% increase).
The overall public sector balance registered a deficit of EUR 454.6 mln in the first nine months of 2009, which is equivalent to 2.7% of GDP.
During the first nine months of 2009, total public sector expenditure increased by 9.4% compared with the first nine months of 2008, while total revenues decreased by 8.4%.
The figures are compiled in accordance to EU concepts and definitions.