Cyprus budget deficit fell to 5.3% of GDP in 2010

The government budget deficit fell to 5.3% of GDP in 2010 from 6.0% of GDP in 2009, according to the preliminary data for the fourth quarter.
The data are compiled under EU norms for the general government accounts.
In absolute terms the public-sector deficit was EUR 926.1 mln in 2010, compared with EUR 1,011.1 mln in 2009.
Total public sector expenditure in 2010 increased by 5% and total revenue by 7% compared with the previous year.
For the fourth quarter alone, total revenue amounted to EUR 2,091.9 mln (a 15.8% increase compared with the corresponding period of 2009), while total expenditure reached EUR 2,473.3 mln (4.7% increase).
The resulting deficit was EUR 381.4 mln compared with EUR 556.5 mln in the corresponding period of the previous year.
The main categories of revenue for the period October-December 2010 were as follows.
Taxes on production and imports reached EUR 735.2 mln (9.4% increase), of which VAT was EUR 423.1 mln (13% increase).
Taxes on income and wealth reached EUR 594.7 mln (11.1% increase).
Revenue from sales of goods and services increased by 60.3% compared with the same period of the previous year.
On the expenditure side, the main categories in October-December 2010 were as follows.
Ccompensation of employees reached EUR 814.1 mln (zero growth compared with the previous period), while social transfers rose by 22.8% to EUR 750.9 mln.
Current transfers reached EUR 86.8 mln (a 49.8% decrease).
Positive growth rates were observed in the category of capital formation (19.6%) and intermediate consumption (7.2%).