The results indicate a surplus of €164.2 million (0.8% of GDP) for the period of January-March 2020, as compared to a surplus of €66.8 million that was recorded during the period of January-March 2019 (0.3% of GDP).

EXPENDITURE Total expenditure for the first quarter of 2020 decreased by €10.8 million compared to the corresponding period of 2019 and amounted to €1,918.4 million from €1,929.2 million (-0.6%).

The capital account decreased during the period January-March 2020 and was limited to €96.4 million compared to €334.5 million in the corresponding period of last year. This decrease for the first quarter of 2020 is mainly due to the decrease in the category of other capital expenditure, which amounted to €13.1 million for 2020 compared to €295.9 million in the corresponding period of 2019.

On the contrary, gross capital formation increased by €44.7 million in the period January-March 2020 and amounted to €83.3 million compared to €38.6 million in 2019.

The following categories of expenditure exhibited an increase in the first quarter of 2020.

Intermediate consumption increased by €138.5 million (+92.4%) and amounted to €288.4 million compared to €149.9 million in 2019. Interest payable also increased to €80.1 million in the first quarter of 2020 from €76.8 million in the corresponding period of last year (increase of €3.3 million or 4.3%).

Social benefits increased by €36.6 million (+6.0%) and amounted to €647.0 million (from €610.4 million in 2019).

Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €46.7 million (+7.9%) and amounted to €641.4 million (from €594.7 million in the corresponding period of 2019).

Subsidies increased by €0.8 million and amounted to €10.4 million for the period January-March 2020 (+8.3%)

Current transfers increased by €1.4 million (+0.9%) and amounted to €154.7 million in the first quarter of 2020 (from €153.3 million in the corresponding period of 2019).

REVENUE Total revenue increased by 4.3% (€86.6 million) and amounted to €2,082.6 million during the period January-March 2020 (from €1,996.0 million during the corresponding period of 2019).

Social contributions collected in the first quarter of 2020 increased by 10.4% (or €53.8 million) and amounted to €571.7 million (from €517.9 million in 2019).

Revenue from the sale of goods and services increased by €37.1 million (or 28.9%) and amounted to €165.6 million in 2020 compared to €128.5 million collected in 2019.

Revenue from taxes on income and wealth recorded an increase of €6,1 million (+1.2%) and amounted to €500.8 million in 2020, compared to €494.7 million collected in the first quarter of 2019.

In contrast, the remaining revenue categories declined in the first quarter of 2020.

Taxes on production and imports decreased by €8.9 million (-1.2%) compared to 2019 and were reduced to €750.6 million (€759.5 million in 2019), of which net VAT revenue decreased by 2.8%, corresponding to €13.7 million and was limited to €469.2 million in 2020 (from € 482.9 million during the first quarter of 2019).

Property income decreased by €0.4 million (-8,3%) and limited to €4.4 million, compared to €4.8 million collected in the first quarter of 2019.

Capital transfers collected by the State decreased by €1.0 million and were limited to €45.4 million in 2020 (as opposed to €46.4 million collected during the period January-March 2019).

Finally, current transfers decreased marginally by €0.1 million (-0.2%) for the first quarter of 2020 and were limited to €44.1 million compared to €44.2 million collected in the corresponding period of 2019.

Increased amounts in specific categories of revenue and expenditure are partly attributed to the implementation of the National Health System since March 1, 2019.

Source: In-Cyprus