Total revenue rosein January to February by €12m to €991.1m compared to a year before, the ministry said in statement on its website on Thursday. Government expenditure fell by €10m to €971m.

The primary surplus, which excludes interest payments, was €94.9m in the first two months of the year, compared with €71.1m in January to February 2015, the finance ministry said.

The increase in revenue resulted from a €17m increase in social security contributions to €183.5m, which may reflect an improvement on the labour market, the ministry said. The drop in direct tax revenue by €5m was offset by an increase in indirect tax revenue in equal measure. Non-tax revenue and grants fell by €3m and €2m.

In the first two months of the year, the government spent on pensions and interest payments €21m and €15m less, bringing them to €85.5m and €62.7m respectively, the ministry said. These savings were offset by a €23m increase in social security payments, which rose by €23m to €243.7m, as well as a €4m increase in subsidies which rose to €29.3m. Salaries and wages expenditure rose by €2m to €257.1m.

In addition, the government received from other bodies, which include local administration, semi-public entities and other entities, €6.8m in the first two months of this year after it transferred to them €9m a year before.

Source: Cyprus Mail