FINANCE: Cyprus records budget surplus of EUR 437 mln

Cyprus recorded a budget surplus of €436.8 mln for the ten months to October, mainly driven by indirect taxes which reached €2.6 bln, according to official data. 

Compared with the same period last year, the budget surplus marked an increase of 80%, mainly owing to reduced expenditure execution.

Indirect taxes (mainly VAT) was 51.5% of total revenue, that amounted to €5.04 bln in January – October 2018 compared with €5.01 bln in the same period of 2017. Total revenue amounted to 84% of the revenue budgeted for the whole of the year.

Compared with 2017, indirect taxes marked an increase of 1.5% in January – October 2018 reflecting the acceleration of economic activity.

Revenue from direct taxes reached €1.72 bln, marking an increase of 2.34% from 2017. Revenue from direct taxes amounted to 77% of total direct taxes projected for the year.

In October alone state coffers received €472 mln in revenue, marking a marginal decrease (€18 mln) compared with September

Budget expenditure for January – October 2018 amounted to €4.6 bln, down 3.41% from the same period of 2017. Expenditure execution amounted 67% of the total spending projected for the year.

The state payroll amounted to €1.37 bln, up 4.01% from 2017, whereas welfare state spending, the budget’s second highest expenditure, amounted to €673.8 mln, compared with €663 mln in January – October 2017.

Debt servicing expenditure declined 16.7% to €382 mln.

The Treasury tables are reported on a cash basis and exclude debt collections and debt repayments.