Cyprus records budget surplus in first quarter

Cyprus recorded a budget surplus in the first quarter, with total revenue rising by 24.3% to CYP 938.4 mln  and total expenditure rising by 15.5% to CYP 890.0 mln. This led to a surplus of CYP 48.4 mln, compared with a deficit of CYP 15.6 mln  in the corresponding quarter of the previous year.

The general government accounts were compiled in accordance to EU concepts and definitions.

The Statistical Service reported that the categories of revenue for the period January-March 2007 were: taxes on production and imports CYP 413.6 mln  (12.8% increase), of which VAT was CYP 235.9 mln  (increase 12.3%), taxes on income and wealth CYP 262.0 mln  (39.6% increase) and social contributions CYP 171.6 mln  (25.2% increase).

The main categories of expenditure for the period January-March 2007 were: compensation of employees CYP 301.2 mln  (7.6% increase), and social transfers CYP 239.3 mln  (14.2% increase).

On May 16th the European Commission recommended Cyprus for euro adoption in January 2008. The final decision will be taken by EU finance ministers in July.