Cyprus’ fiscal accounts in the last quarter of 2021 generated a surplus of €37.7 million compared with a deficit of €648 million in the respective period of 2020.

According to preliminary data released on Friday by the Statistical Service of Cyprus (Cystat), the significant improvement in Q4 2021 was driven mainly by the significant increase in public revenue combined with the annual drop in public expenditure, albeit to a smaller extent.

During the period of October-December 2021, total expenditure decreased by €91.2 million or by -2.9 per cent to €3,075.8 mn, from €3,167.1 million in the corresponding period of 2020.

According to Cystat, social transfers decreased by €83.5 million (-7.0 per cent) to €1,106.6 mn, from €1,190.1 million in the corresponding quarter of 2020. The compensation of employees (including imputed social contributions and pensions of civil servants) decreased by €9.1 million (-1.0 per cent) to €915.1 mn, from €924.2 million in the fourth quarter of 2020.

Subsidies decreased by €54.6 million (-56.6 per cent) to €41.9 mn, from €96.5 million in the corresponding quarter of 2020. Interest payable decreased by €22.3 million (-22.1 per cent) to €78.6 mn, from €100.9 million in the fourth quarter of 2020

The capital account decreased by €10.5 million (-2.8 per cent) from €363.6 million (€275.9 million capital formation and €87.7 million capital transfers), compared to €374.1 million (€341.4 million capital formation and €32.7 million capital transfers) in the corresponding quarter of 2020.

Intermediate consumption increased by €58.5 million (+18.4 per cent) and amounted to €377.5 mn, compared to €318.9 million in the fourth quarter of 2020. Current transfers increased by €30.2 million (+18.6 per cent) and amounted to €192.6 mn, compared to €162.4 million in the corresponding quarter of 2020.

During the period of October-December 2021, total revenue increased by €594.3 million (+23.6 per cent) to €3,113.5 mn, compared to €2,519.2 million in the corresponding period 2020.

Taxes on production and imports increased by €200.0 million (+28,5 per cent) and amounted to €902.1 mn, compared to €702.1 million in the corresponding quarter of 2020, of which net VAT revenue increased by €198.6 million (+51.5 per cent) and amounted to €584.0 mn, compared to €385.4 million in the fourth quarter of 2020.

Revenue from the sale of goods and services increased by €29.3 million (+13.7 per cent) and amounted to €242.7 mn, compared to €213.4 million in the corresponding quarter of 2020. Social contributions increased by €40.9 million (+5.5 per cent) and amounted to €785.8 mn, compared to €744.9 million in the fourth quarter of 2020.

Revenue from taxes on income and wealth increased by €196.6 million (+29.5 per cent) and amounted to €863.2 mn, compared to €666.6 million in the corresponding quarter of 2020.

Capital transfers increased by €163.3 million and amounted to €213.9 mn, compared to €50.6 million in the fourth quarter of 2020.

Current transfers decreased by €20.7 million (-18.7 per cent) to €89.9 mn, from €110.6 million in the corresponding quarter of 2020, while Property income decreased by €15.1 million (-48.7 per cent) to €15.9 mn, from €31.0 million in the fourth quarter of 2020, Cystat added.