In January to May 2015, the government generated a primary surplus on a cash basis of €157.6 million compared to €225 million in the respective five-month period of 2014, the Finance Ministry said in a statement on its website today.

The primary balance is the difference of overall revenue and spending, excluding interest payments on public debt.

Overall revenue fell 2.7% in January to May to below €2.5 billion mainly on non-tax revenue which fell 13% to €402 million compared to a year before, the statement said.

Overall tax revenue fell an annual 0.5% to €2.1 billion, as direct tax revenue fell 9.1% to €706.2 million. Indirect tax revenue rose 5.2% to €961.4 million.

Government spending fell 0.2% to €2.5 billion mainly on a 6% drop of social insurance fund outlays to €569 million and a 2% drop in wages to €648.8 million in the first five months of the year compared to the respective period of 2014, the ministry said. Overall interest payments in the first five months of 2015 rose 1.8% to €170.9 million.

Source: Cyprus Mail