Cyprus Mail

Fiscal deficit seen at 0.5% of GDP in 2015, PDMO says

By Stelios Orphanides

Cyprus’s government generated a fiscal deficit of €82.5m or 0.5 per cent of economic output in 2015, after generating a deficit of €43m or 0.2 per cent in 2014, the public debt management office said.

Even so, the government generated a primary surplus of €466.5m or 2.7 per cent of gross domestic product in 2015 compared to €455.2m or 2.6 per cent the year before, the PDMO, a division of the finance ministry said in its February 2016 website newsletter.

Total revenue fell 0.6 per cent last year to almost €6.9bn, mainly on a reduced dividend from the Central Bank of Cyprus which fell by “about €30m,” the PDMO said.

Total expenditure remained unchanged at below €7bn last year, as a drop in intermediate consumption and the government’s wage bill which fell 1.4 per cent and 2.9 per cent respectively, was offset by an increase in interest rate payment and fixed capital formation by 10 per cent and 4.5 per cent respectively, the office said.