Cyprus Mail

Government posts a €19m fiscal gap in Q2


The government generated a fiscal deficit of €18.7 million in the second quarter of 2018 compared to a shortfall of €86.5m in the respective three-month period last year, the statistical service said on Wednesday.

In April to June, public revenue and spending rose 8.1 per cent to €1.8 billion and 0.8 per cent to also €1.8bn respectively compared to a year before, Cystat said.

Tax on production and imports rose in April to June an annual 10 per cent to €778.4m compared to the respective period last year, Cystat said. Value added tax (VAT) revenue, social contributions and income and wealth tax went up 20 per cent to €488.6m, 15 per cent to €460m and 6.3 per cent to €276.4m respectively. Revenue from the sale of services fell 12 per cent to €140.6m.

In the second quarter, social spending and wages and salaries rose 4.3 per cent to €715m and 0.6 per cent to €553.6m respectively, Cystat said. Intermediate consumption rose 1.3 per cent to €176.4m.

In the second quarter, “the capital account recorded an expenditure of €209m compared to €209.9m in (the respective period of) 2017,” which translates to a 0.4 per cent reduction.

In the first six months of the year, the government generated a fiscal surplus of €326.9m.


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