Cyprus Public sector balance registers a deficit in the first 9M

The overall public sector balance registered a deficit of 454.6 million euro in the first nine months of 2009 or -2.7% of GDP.

According to a press release, issued here today by Cyprus Statistical Service (CyStat), during the first nine months of 2009, total public sector expenditure increased by 9.4%, to 5,515 million euro, as compared to the first nine months of 2008, while, at the same time, total revenue decreased by 8,4%, to 5,060.4 million euro.

On the basis of the preliminary data on the General Government accounts for the period July-September 2009, compiled in accordance to EU concepts and definitions, the total revenue amounted to 1,869.9 mn euro (15% decrease compared to the corresponding period of 2008), while total expenditure reached 1,906.8 mn euro, (2.8% increase) resulting to a deficit of 36.9 mn euro as compared to 343.3 mn euro surplus in the corresponding period of the previous year.

According to the CyStat, the main categories of revenue for the period July-September 2009 were: taxes on production and imports 678.1 mn euro (19.8% decrease), of which VAT was 418 mn euro (15.8% decrease), taxes on income and wealth 592.9 mn euro (23.6% decrease). Revenue from sales of goods and services decreased by 8.5% as compared to the corresponding period of the previous year.

The main categories of expenditure for the period July-September 2009 were: compensation of employees 632.7 mn euro (2.6% increase), and social transfers 524.9 mn euro (1% decrease), current transfers reached 175.7 mn euro (12.8% increase). Positive growth rates also were observed in the categories of the capital formation (37.2% increase) and intermediate consumption (7% increase).