The surplus compares to €88.5m or 0.5% of economic output for the same period in 2016.

The improved fiscal results were mainly on a 9.5% annual increase in revenue to €6.5bn in January to November which outstripped a 3% increase in spending to €6.1bn, Cystat said in a statement on its website.

Revenue from taxes on production and imports rose 13% in January to November to €2.7bn compared to a year before, which included €1.6bn in value added tax (VAT) revenue which rose 15%, Cystat said. Revenue from income and wealth tax went up 3.6% to below €1.5bn and social contributions rose 11% to over €1.5bn. Revenue from the sale of services rose 11% to €474m and capital transfers almost doubled to €71.8m.

Current transfers and income from interest and dividends dropped an annual 8.1% and 5.6% to €172.8m and €108.7m respectively in the first eleven months of the year, Cystat added.

On the other hand, intermediary consumption and the government’s staff costs rose 11% and 4.2% to €576m and €2bn in the first eleven months of the year compared to the same period last year, Cystat said. Welfare expenditure and current transfers increased 1.3% to €2.3bn and 9.6% to €400.8m respectively.

The cost of servicing public debt rose an annual 5.2% in January to November to €459.3m, while capital expenditure dropped 1% to €285.4m, Cystat said. Subsidies and capital transfers fell to €33.1m from €68.1m and to €49.3m from €63.6m respectively.

The 2017 budget submitted by the government provided for a total of less than €7bn in revenue and expenditure slightly exceeding €7bn. Last year, the government generated a fiscal surplus of 0.5% of the economy or €82.4m.

Source: Cyprus Mail