CYPRUS: Fiscal deficit reduced by €198 mln in Q2 2014

The fiscal deficit was reduced by €198 mln in the second quarter of the year compared with the same period of 2013, mainly as a result of a significant decrease in civil servants’ numbers and payroll and a decrease of social benefits.
According to data released by the Statistical Service Cystat, on the basis of the preliminary data on the general government accounts for the period April-June the total revenue amounted to €1612.2 mln (1% increase compared to the corresponding period of 2013), while total expenditure reached €1623.8 mln, (10.1% decrease) resulting in a deficit of €11.6 mln as compared to €209.5 mln deficit in the corresponding period of the previous year.
The main categories of revenue for the period April-June were: taxes on production and imports €579.8 mln (17.2% decrease), of which VAT was €335.4 mln (18,5% decrease), taxes on income and wealth €302. 9 mln (17.4% decrease).
Revenue from sales of goods and services increased by 7% as compared to the corresponding period of the previous year reaching 99.6 mln.
During the period April-June 2014, revenue from dividends amounted to 181.4 mln, as compared to 89.4 mln received during 2013 and recorded in the period January-March 2013.
As noted, the main categories of expenditure for the period April-June 2014 were: compensation of employees (including imputed social contributions and pensions of civil servants) €527.3 mln (9.4% decrease), and social transfers €669.3 mln (11.5% decrease), current transfers reached €78.1 mln (17.3% decrease).
Negative growth rate was observed in the category of intermediate consumption (14.2% decrease) reaching 159.6 mln.