January to August fiscal deficit within bailout targets

CYPRUS’ fiscal deficit in the first eight months of the year was 2.05 per cent of GDP, finance ministry figures showed, down from 3.03 per cent in the same period last year.

Figures released on Monday showed that between January and August, Cyprus registered a primary surplus (excludes interest payments on outstanding debt) of €103.8 million, which is well-within the target set out by the bailout fiscal adjustment programme.

The programme provides for a primary deficit of €395 million throughout 2013.

Cyprus’ fiscal deficit for the first eight months dropped to €336.4 million compared with €541.38 million in 2012.

Total revenues for January to August declined by 0.33 per cent or €6.06 billion compared with €6.07 billion in the corresponding period of 2012.

Public expenditure dropped by 5.22 per cent to €4.41 billion from €4.66 billion in January – April 2012.

Tax revenues also declined by 4.82 per cent — down to €3.40 billion compared with €3.57 billion in the first eight months of 2012.

Direct tax revenues increased by 3.2 per cent to €1.30 billion from €1.26 billion in January – August 2012.

Revenues from indirect taxes such as VAT declined by 7.89 per cent to €1.5 billion compared with €1.63 2012.

Current expenditure for January – August 2013 fell 3.65 per cent to €4.31 billion compared with €4.48 billion in 2012, whereas the wage-bill dropped 6.29 per cent to €1.11 billion from €1.19 billion in the corresponding period of 2012.

 

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