Cyprus government reports budget surplus in Q2

Public finances in Cyprus were in surplus again in the second quarter of 2008. according to preliminary data on the general government accounts compiled in accordance to EU concepts and definitions.
Total revenue amounted to EUR 1,683.2 mln (9.9% increase compared to the corresponding period of 2007), while total expenditure reached EUR 1,632.9 mln (10.3% increase).
The resulting surplus was EUR 50.3 mln, compared with a EUR 50.6 mln surplus in the corresponding period of the previous year and a EUR 89.9 mln surplus in the first quarter.
The main categories of revenue for the period April-June 2008 were: taxes on production and imports EUR 812.3 mln (13.7% increase), of which VAT was EUR 477.5 mln (19% increase).
Taxes on income and wealth amounted to EUR 344.7 mln (3.8% decrease).
Revenue from sales of goods and services increased by 4% compared with the corresponding period of the previous year.
The main categories of expenditure for the period April-June 2008 were: compensation of employees EUR 547.3 mln (4% increase) and social transfers EUR 531.2 mln (11.1% increase).
Current transfers reached EUR 214.9 mln (48.5% increase). Positive growth rates were observed in the categories of the capital formation (9.2% increase) and intermediate consumption (13% increase).
The overall public sector balance registered a surplus of EUR 140.2 mln in the first half of 2008, equivalent to an estimated 0.9% of GDP.
During the first six months of 2008 total public sector expenditure increased by 6.2% over the first half of 2007, while total revenues increased by 6.2%.