General government shows €425.7m surplus

The preliminary General Government fiscal results indicate a surplus of €425.7 mn, equal to 1.5% of GDP for the period of January-July 2023, as compared to a surplus of €109.5 mn or 0.4% of GDP that was recorded during the period of January-July 2022, according to data published by CySTAT.

The surplus comes from the greater increase in revenues by €316.2 million compared to the increase in expenses, a development due to the large increase in both income and wealth tax revenues and social contributions.

The increase in expenses compared to last year is mainly due to the increase in staff salaries (including imputed social contributions and pensions of civil servants) by €202.4 million (+11.9%).

Revenue

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During the period of January-July 2023, total revenue increased by €692.6 mn (+11.7%) and amounted to €6,596.9 mn, compared to €5,904.3 mn in the corresponding period 2022.

In detail, taxes on production and imports increased by €200.3 mn (+9.2%) and amounted to €2,370.7 mn, compared to €2,170.4 mn in 2022, of which net VAT revenue increased by €139.7 mn (+9.9%) and amounted to €1,549.3 mn, compared to €1,409.6 mn in 2022.

Revenue from taxes on income and wealth increased by €258.6 mn (+19.2%) and amounted to €1,603.5 mn, compared to €1,344.9 mn in 2022.

Social contributions increased by €281 mn (+16.2%) and amounted to €2,011.3 mn, compared to €1,730.3 mn in 2022.

Current transfers increased by €39.8 mn (+32%) and amounted to €164.3 mn, compared to €124.5 mn in 2022. On the contrary, property income decreased by €19.9 mn (-24.2%) to €62.3 mn, from €82.2 mn in 2022. Capital transfers decreased by €36.3 mn (-66.4%) to €18.4 mn, from €54.7 mn in 2022.

Revenue from the sale of goods and services decreased by €30.9 mn (-7.8%) to €366.4 mn, from €397.3 mn in 2022.

Expenditure

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During the period of January-July 2023, total expenditure increased by €376.4 mn (+6.5%) and amounted to €6,171.2 mn, compared to €5,794.8 mn in the corresponding period of 2022.

In detail, social benefits increased by €248.1 mn (+10.5%) and amounted to €2.607,4 mn, compared to €2,359.3 mn in 2022. Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €202.4 mn (+11.9%) and amounted to €1,898.1 mn, compared to €1,695.7 mn in 2022.

Subsidies increased by €11.1 mn (+25.2%) and amounted to €55.2 mn, compared to €44.1 mn in 2022.

The capital account decreased by €10.8 mn (-2.6%) to €404.8 mn, from €415.6 mn in 2022. In detail, gross capital formation increased by €38.1 mn (+12.2%) and amounted to €349.6 mn, compared to €311.5 mn in 2022 and other capital expenditure decreased by €48.9 mn (-47%) to €55.2 mn, compared to €104.1 mn in 2022.

Moreover, intermediate consumption decreased by €17 mn (-2.7%) to €600.9 mn, from €617.9 mn in 2022.

Interest payable decreased by €25.5 mn (-9.1%) to €253.1 mn, from €278.6 mn in 2022. Current transfers decreased by €31.9 mn (-8.3%) to €351.7 mn, from €383.6 mn in 2022.

(Source: CNA)