The Statistical Service of Cyprus (CYSTAT) has released preliminary General Government fiscal results for the period of April-June 2023, showing a reduced deficit of pound 218.4 million, an improvement compared to the pound 306.4 million deficit recorded during the same period in 2022.
Revenue on the rise
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During the second quarter of 2023, total revenue increased by pound 327.3 million, a rise of 14.0%. The total revenue amounted to pound 2,665.6 million, compared to pound 2,338.3 million in the corresponding period in 2022.
Taxes on production and imports increased by pound 119.0 million, a 13.8% growth, reaching pound 984.5 million. This includes a notable increase of pound 98.4 million, or 18.1%, in net VAT revenue, which amounted to pound 643.4 million, compared to pound 545.0 million in Q2 2022. Social contributions increased by pound 114.0 million (15.3%) to reach pound 860.4 million, compared to pound 746.4 million in the same quarter of 2022.
Revenue from taxes on income and wealth showed a growth of pound 64.7 million (15.6%), amounting to pound 478.3 million, as opposed to pound 413.6 million in Q2 2022. Other current transfers increased by pound 57.0 million to pound 103.6 million, up from pound 46.6 million in the second quarter of 2022.
However, capital transfers decreased by pound 6.1 million, a 12.8% drop, to reach pound 41.7 million, down from pound 47.8 million in the same quarter of 2022. Property income receivable decreased by pound 2.4 million (8.1%) to pound 27.3 million, compared to pound 29.7 million in Q2 2022. Revenue from the sale of goods and services decreased by pound 18.9 million (10.0%), amounting to pound 169.8 million, compared to pound 188.7 million in the corresponding quarter of 2022.
Expenditure shows a rise
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In the period from April to June 2023, total expenditure increased by pound 239.3 million, marking a 9.0% rise and amounting to pound 2,884.0 million, compared to pound 2,644.7 million in the same period in 2022.
Social transfers increased by pound 84.3 million (7.6%) to reach pound 1,198.0 million, compared to pound 1,113.7 million in Q2 2022. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by pound 96.0 million (13.0%) to pound 837.1 million, as opposed to pound 741.1 million in the corresponding quarter of 2022. Subsidies showed a growth of pound 44.0 million, totalling pound 61.5 million, compared to pound 17.5 million in Q2 2022. Other current expenditure increased by pound 1.0 million (0.6%), amounting to pound 156.6 million, up from pound 155.6 million in the same quarter of 2022. Property income payable increased by pound 5.5 million (4.6%) to reach pound 123.6 million, compared to pound 118.1 million in Q2 2022.
Additionally, the capital account increased by pound 36.2 million (18.8%), amounting to pound 228.9 million. This increase was driven by capital formation amounting to pound 192.2 million and capital transfers totaling pound 36.7 million.
In contrast, intermediate consumption decreased by pound 27.7 million (9.0%), reaching pound 278.3 million, as opposed to pound 306.0 million in the second quarter of 2022.
Source: Cyprus News Agency