The deterioration of public finances in January to June 2016 was due to less cash transferred to the general government’s coffers from other government bodies, including local authorities, and semi-public entities, which fell to €1.6m from €42.1m in the respective period last year, the Finance Ministry said in a statement on its website on Wednesday. Overall government revenue rose by €37m to €3b and overall spending dropped by €24m to below €3.1b
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Indirect and direct tax revenue rose in the first six months of the year by €45m and €11m to €851.7m and €1.2b respectively compared to the same period last year. Social security contributions rose by €23m to €510.2m, offsetting a €30m drop in non-tax revenue to €417.3m, the ministry said.

The drop in government spending was mainly on reduced current transfers, pensions, non-allocated expenditure, and interest payments, which fell by €46m, €30m, €24m and €12m to €673.8m, €261.1m, €8m and €224m respectively. These offset increased social security payments, subsidies, and capital expenditure, which rose by €37m, €27m and €24m to €775.9m, €70.3m and €92.9m respectively.

The primary balance in the first six months of the year, which excludes interest payments, fell to a surplus of €180.3m from €202.5m surplus in January to June 2015, according to the statement.

Source: Cyprus Mail