Cyprus revenue rises faster than expenditure in Q211

While the first-half figures for the budget painted a grim picture of expenditure far outpacing revenue, the figures for the second quarter alone are a bit brighter.
While the central government consolidated budget (cash basis) reported a drop in revenue in the first half of the year of 0.3% and an increase in expenditure of 9.2%, the quarterly accounts of the general government reported a second-quarter rise in total revenue of 4.2% over the year earlier to EUR 1,655.6 mln.
It is not clear whether the quarterly accounts are measured on a cash or accruals basis.
Total expenditure rose in the second quarter by 3% over the year earlier to EUR 1,971.4 mln.
The budget deficit in the second quarter was EUR 315.8 mln compared with a deficit of EUR 326.0 mln in the corresponding period of the previous year.
The main categories of revenue for the period April-June 2011 were as follows.
Taxes on production and imports EUR 669.6 mln (3.1% increase).
Of this, VAT was EUR 372.9 mln (2.1% increase) and taxes on income and wealth EUR 376.6 mln (24.3% increase).
Revenue from sales of goods and services increased by 4.4% compared with the corresponding period of the previous year reaching 99.7 mln.
The main categories of expenditure for the period April-June 2011 were as follows.
Compensation of employees EUR 636.8 mln (2.5% increase) and social transfers EUR 666.7 mln (1.6% increase).
Current transfers reached EUR 191.8 mln (0.7% decrease) and intermediate consumption EUR 199.5 mln (2.1% decrease).
Capital formation leapt by 33.4%, reaching 150.2 mln, probably because of a large roadbuilding programme.