The fiscal accounts of the general government generated a surplus of €141.8 million for the period of January – July 2022, marking a sizeable improvement compared to a deficit of €711 million in the respective period of last year, according to preliminary data released by the Cyprus Statistical Service (Cystat).

As a percentage of GDP, the general government’s surplus in January – July 2022 amounted to 0.6 per cent of GDP compared with a deficit of 3 per cent in the corresponding period of 2021. The improvement is attributed to the significant rise in public revenue coupled with a marginal increase in spending.

Total expenditure in the first seven months of 2022 increased by €9.5 mn (+0.2 per cent) to €5.75 bn, compared to €5.74 bn in the corresponding period of 2021.

Among other areas, social benefits increased by €226.4 mn (+10.6 per cent) and amounted to €2.35 bn, compared to €2.12 bn in 2021. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €72.2 mn (+4,5 per cent) to €1.69 bn.

Intermediate consumption increased by €86.6 mn (+16.9 per cent) and amounted to €597.4 mn, compared to €510.8 mn in 2021, while current transfers were up by €32.2 mn (+9.3 per cent) and amounted to €380.2 mn, Cystat said.

Subsidies decreased by €460.9 mn to €44.1 mn, from €505.0 mn in 2021, while interest payable decreased by €26.3 mn (-8.4 per cent) to €285.7 mn, from €312.0 mn in 2021.

During the period of January-July 2022, total revenue increased by €862.3 mn (+17.1 per cent) and amounted to €5.89 bn, compared to €5.03 bn in the corresponding period of 2021.

According to Cystat, taxes on production and imports increased by €342.2 mn (+18.3 per cent) to €2.2 bn, of which net VAT revenue increased by €267.7 mn (+22.6 per cent) and amounted to €1.45 bn.

Revenue from taxes on income and wealth increased by €242.9 mn (+22.0 per cent) and amounted to €1.34 bn, while social contributions increased by €236.9 mn (+16.1 per cent) and amounted to €1.7 bn.

Revenue from the sale of goods and services rose by €47.0 mn (+14.3 per cent) and amounted to €374.8 mn, while property income increased by €37.9 mn (+58.8 per cent) and amounted to €102.4 mn.

Finally, capital transfers decreased by €30.1 mn (-41.7 per cent) to €42.1 mn, from €72.2 mn in 2021.

Current transfers decreased by €14.4 mn (-11.4 per cent) to €111.6 mn, from €126.0 mn in 2021.