The improved fiscal balance resulted from cash-basis versus accrual-basis adjustments worth €55.7m in January to November last year, the ministry said in a statement on its website on Monday. Revenue in the said period rose by €127m to almost €5.8bn and expenditure dropped by €42m to below €5.8bn.

The increase in revenue in the first 11 months of 2016 was on a €138m increase in indirect tax revenue, including €96m in value added tax, the Finance Ministry said. The drop in spending resulted mainly from €65m decrease in current transfers, a drop in interest payments by €39m and pensions by €23m which more than offset a €38m increase in social security payments and a €31m rise in subsidies.

The primary balance in January to November last year which excludes net interest payments on government debt was €509.4m which was €37m more compared to a year before, the ministry said.

Source: Cyprus Mail