General Government Records Fiscal Deficit €187.9 Mn In The First Quarter Of 2021
General Government recorded a fiscal deficit of €187.9 mln for the period of January-March 2021, as compared to a surplus of €226.9 mln that was recorded during the period of January-March 2020, according to preliminary General Government fiscal results, which are prepared by the Statistical Service of Cyprus (CYSTAT).
During the first quarter an increase in expenditure and a decrease in revenue was recorded, mainly due to the measures taken to support enterprises and the suspension of various sectors of the economy, respectively, as a result of the Covid-19 pandemic. Increased amounts in specific categories of expenditure and revenue are partly attributed to the full implementation of the National Health System as of 01.06.2020. During the period of January-March 2021, total expenditure increased by €341.1 mn (+17.8%) and amounted to €2,258.6 mn, compared to €1,917.5 mn in the corresponding period of 2020.
Specifically, among the main categories of expenditure, social transfers increased by €78.6 mn (+10.5%) and amounted to €828.1 mn, compared to €749.5 mn in the corresponding quarter of 2020. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €30.1 mn (+4.6%) and amounted to €679.8 mn, compared to €649.7 mn in the first quarter of 2020. Subsidies increased by €264.4 mn and amounted to €274.8 mn, compared to €10.4 mn in the corresponding quarter of 2020.
The capital account decreased by €53.6 mn (-39.6%) to €81.9 mn (€57.0 mn capital formation and €24.9 mn capital transfers), from €135.5 mn (€114.3 mn capital formation and €21.2 mn capital transfers) in the first quarter of 2020. Intermediate consumption decreased by €11.9 mn (-6.9%) to €159.2 mn, from €171.1 mn in the corresponding quarter of 2020.
During the period of January-March 2021, total revenue decreased by € 73.7 mn (-3.4%) to € 2,070.7 mn, compared to € 2,144.4 mn in the corresponding period 2020. Specifically, among the main categories of revenue, taxes on production and imports decreased by € 13.0 mn (-1.7%) to € 738.8 mn, from € 751.8 mn in the corresponding quarter of 2020, of which net VAT revenue decreased by € 2.6 mn (-0.6%) to € 463.3 mn, from € 465.9 mn in the first quarter of 2020.
Revenue from the sale of goods and services decreased by € 18.1 mn (-12.6%) to € 125.3 mn, from € 143.4 mn in the corresponding quarter of 2020. Social contributions decreased by € 28.0 mn (-4.5%) to € 588.5 mn , from € 616.5 mn in the first quarter of 2020. Revenue from taxes on income and wealth decreased by € 31.4 mn (-6.1%) to € 480.4 mn, from € 511.8 mn in the corresponding quarter of 2020. On the contrary, capital transfers increased by € 15.6 mn (+ 32.8%) and amounted to € 63.2 mn, compared to € 47.6 mn in in the first quarter of 2020.
Source: CNA
Author: Property Canvas
ETEK Property Valuers, Registered and Licensed Real Estate AgencyProperty Canvas is a leading real estate agency in Cyprus, specializing in property sales, investment, and valuation. Our team comprises licensed estate agents and certified property valuers with extensive experience in the Cypriot market, providing expert guidance to buyers, sellers, and investors. Our Team has authored the “General Government Records Fiscal Deficit €187.9 Mn In The First Quarter Of 2021”.
