CYPRUS: General government account deficit narrows in Q1

The deficit in the General Government accounts narrowed by €4.2 mln to €18.2 mln in the the first quarter of 2015 compared to a deficit of €22.4 mln in the same quarter last year.

Official data showed that according to preliminary data on the General Government accounts for January-March, compiled in accordance with EU concepts and definitions (ESA 2010), total revenue amounted €1.529,9 mln, a 3.1% drop from the first quarter of 2014, while total expenditure also dropped year-on-year, by 3.3% to €1.548,1 mln. This excludes the equity injection of €1.5 bln in the first quarter of 2014 to recapitalise (and subsequently nationalise) the Cooperative Central Bank of Cyprus.
The main sources of revenue in January-March were: taxes on production and imports €608.3 mln (+3.2% y-o-y), of which VAT accounted for €351.4 mln (+9.7%), and taxes on income and wealth €387.6 mln (-12.3%). Revenue from sales of goods and services increased by 2.5% year-on-year to €103.7 mln.
Expenditure in January-March was on: compensation of employees (including imputed social contributions and pensions of civil servants) €527.6 mln (-1.1% y-o-y), and social transfers €569.1 mln (-6.1% y-o-y). Intermediate consumption reached €117 mln (-9.1% y-o-y).