The balance of revenue and expenditure of the Cyprus economy recorded a deficit that approached 900 million in 2013, according to the Statistical Service of Cyprus. Specifically, the budget deficit reached 896.9 million euros, representing 5.4% of Gross Domestic Product. Based on the information received in 2013 the total expenses decreased by 6.9% compared with 2012, falling to 7.55 billion euros. Accordingly the revenues for 2013 showed a decrease of 4.6% compared with the previous year, of 6.65 billion euros. Furthermore, based on the preliminary data on the General Government accounts for the period October-December 2013 prepared in accordance with the European system, the total revenue amounted to 1,970 billion euros and total expenditure at 2,559 billion euros, resulting in a deficit of 589.2 million euros, compared with a deficit of 546.1 million euros in the corresponding period of 2012.
The main categories of revenue for the period October-December 2013 were: taxes on production and imports 611.4 million euros, 16.8% decrease from the corresponding period of 2012, of which VAT was 365.2 million euros, taxes on income and wealth 610,9 million euros, a13.4% increase over the corresponding period of 2012. Revenue from the provision of goods and services increased by 41.3% compared with the same period in 2012 reaching 154.7 million.
The main categories of expenditure for the period October-December 2013 were: social benefits 775.3 million euros, a 13.5% increase over the corresponding period of 2012 and compensation of employees 758.5 million. The current transfers fell to 87.5 million euros while an increase was recorded in the capital account, 380.0 million euros compared with 178.0 million in the corresponding period last year, of which 299 million euros relates to compensation for provident and pension funds held deposits in the former People’s Bank.
According to the figures, the deficit of the public sector in the first quarter last year was 5.3 million, while in the second quarter recorded a deficit of 209.5 million euros. In the third quarter of 2013 recorded a deficit of 92.9 million, while in the fourth quarter deficit jumped to 589.2 million euros, bringing the total deficit for the year to 896.9 million euros.
By Nicole P.