According to preliminary data released on Friday by the Statistical Service of Cyprus (Cystat), the significant improvement in Q4 2021 was driven mainly by the significant increase in public revenue combined with the annual drop in public expenditure, albeit to a smaller extent.

During the period of October-December 2021, total expenditure decreased by €91.2 million or by -2.9% to €3,075.8 million, from €3,167.1 million in the corresponding period of 2020.

According to Cystat, social transfers decreased by €83.5 million (-7.0%) to €1,106.6 million, from €1,190.1 million in the corresponding quarter of 2020. The compensation of employees (including imputed social contributions and pensions of civil servants) decreased by €9.1 million (-1.0%) to €915.1 million, from €924.2 million in the fourth quarter of 2020.

Subsidies decreased by €54.6 million (-56.6%) to €41.9 million, from €96.5 million in the corresponding quarter of 2020. Interest payable decreased by €22.3 million (-22.1%) to €78.6 million, from €100.9 million in the fourth quarter of 2020

The capital account decreased by €10.5 million (-2.8%) from €363.6 million (€275.9 million capital formation and €87.7 million capital transfers), compared to €374.1 million (€341.4 million capital formation and €32.7 million capital transfers) in the corresponding quarter of 2020.

Intermediate consumption increased by €58.5 million (+18.4%) and amounted to €377.5 million, compared to €318.9 million in the fourth quarter of 2020. Current transfers increased by €30.2 million (+18.6%) and amounted to €192.6 million, compared to €162.4 million in the corresponding quarter of 2020.

During the period of October-December 2021, total revenue increased by €594.3 million (+23.6%) to €3,113.5 million, compared to €2,519.2 million in the corresponding period 2020.

Taxes on production and imports increased by €200.0 million (+28,5%) and amounted to €902.1 million, compared to €702.1 million in the corresponding quarter of 2020, of which net VAT revenue increased by €198.6 million (+51.5%) and amounted to €584.0 million, compared to €385.4 million in the fourth quarter of 2020.

Revenue from the sale of goods and services increased by €29.3 million (+13.7%) and amounted to €242.7 million, compared to €213.4 million in the corresponding quarter of 2020. Social contributions increased by €40.9 million (+5.5%) and amounted to €785.8 million, compared to €744.9 million in the fourth quarter of 2020.

Revenue from taxes on income and wealth increased by €196.6 million (+29.5%) and amounted to €863.2 million, compared to €666.6 million in the corresponding quarter of 2020.

Capital transfers increased by €163.3 million and amounted to €213.9 million, compared to €50.6 million in the fourth quarter of 2020.

Current transfers decreased by €20.7 million (-18.7%) to €89.9 million, from €110.6 million in the corresponding quarter of 2020, while Property income decreased by €15.1 million (-48.7%) to €15.9 million, from €31.0 million in the fourth quarter of 2020, Cystat added.

Source: Cyprus Mail