Cyprus fiscal deficit reduced to 2.17% of GDP in first seven months of 2013

Cyprus fiscal deficit reached 2.17% of GDP during the first seven months of 2013, compared to 3.44% during the same period in 2012.

According to data released on Wednesday by the Ministry of Finance, revenue between January–July 2013 recorded an increase of 0.20% compared to the corresponding period of 2012, while the expenditure decreased by 6.03%.
Specifically, fiscal deficit for the period January-July 2013 reached 356.9 million euro, compared to a deficit of 615.29 million euro in the same period of 2012, decreased by 258.3 million euro.

Revenue increased during the first seven months of the year by 0.20% and reached 3.55 billion euro, compared to 3.54 billion euro the same period of 2012. Public expenditure decreased by 6.03% to 3.91 billion from 4.16 billion euro in the corresponding period of 2012.
Tax revenue decreased during the first half of the year by 5.11%, reaching 2.9 billion euro, compared the same period last year, while revenue from direct tax recorded an increase of 1.01 % reaching 1.06 billion euro. Indirect tax revenue, during the first half of the year decreased by 7.23%, reaching 1.33 billion euro, compared to the same period last year. Income tax revenue recorded a decrease of 9.12% and reached 582.3 million euro, compared to 640.78 million in the first half of 2011.

The primary balance showed a surplus of 74.1 million euro during the period January-July 2013, compared to deficit of 159.1 million the corresponding period of 2012.
According to the memorandum agreed with Cyprus’ international lenders, Cyprus will achieve a general government primary deficit not exceeding €395 million or 2.4% of GDP in 2013. For 2014 the government primary deficit should not exceed 4.25% of GDP, while in 2015, 2.1% of GDP.