General government deficit at €39 million in second quarter of 2024

The preliminary General Government fiscal results, published by CySTAT, indicate a deficit of €39m for the period of April-June 2024, as compared to a deficit of €260.8m that was recorded during the period of April-June 2023.

Revenue

During the period of April-June 2024, total revenue increased by €523.2m (19.2%) and amounted to €3,252.6m, compared to €2,729.4m in the corresponding period 2023.

In more detail, taxes on production and imports increased by €173.6m (17.4%) and amounted to €1,172.5m, compared to €998.9m in the second quarter of 2023, of which net VAT revenue increased by €131.3m (20%) and amounted to €789m, compared to €657.7m in the corresponding quarter of 2023.

Social contributions increased by €131.2m (13.5%) and amounted to €1,101.9m, compared to €970.7m in the second quarter of 2023.

Revenue from taxes on income and wealth increased by €89.2m (21.3%) and amounted to €507.1m, compared to €417.9m in the corresponding quarter of 2023.

Revenue from the sale of goods and services increased by €47.9m (26.7%) and amounted to €227m, compared to €179.2m in the second quarter of 2023.

Capital transfers increased by €2.4m (4.5%) and amounted to €56.1m, compared to €53.7m in the corresponding quarter of 2023. Property income receivable increased by €17.1m (62.2%) and amounted to €44.6m, compared to €27.5m in the second quarter of 2023.

Other current transfers increased by €61.8m (75.8%) and amounted to €143.4m, compared to €81.6m in the corresponding quarter of 2023.

Expenditure

During the period of April-June 2024, total expenditure increased by €301.4m (10.1%) and amounted to €3,291.6m, from €2,990.2m in the corresponding period of 2023.

Specifically, social transfers increased by €108.5m (8.4%) and amounted to €1,402.4m, compared to €1,293.9m in the second quarter of 2023.

Compensation of employees (including imputed social contributions and pensions of civil servants) increased by €58m (6.9%) and amounted to €899.7m, compared to €841.7m in the corresponding quarter of 2023.

Other current expenditure increased by €68.3m (48%) and amounted to €225.1m, compared to €142.3m in the second quarter of 2023.

Intermediate consumption increased by €11.2m (3.8%) and amounted to €310.2m, compared to €299m in the corresponding quarter of 2023.

Property income payable increased by €48.4m (38.8%) and amounted to €172.9m, compared to €124.5m in the second quarter of 2023. The capital account increased by €22m (9.6%) and amounted to €250.6m (€201.5m capital formation and €49.1m capital transfers), compared to €228.6m (€184m capital formation and €44.6m capital transfers) in the corresponding quarter of 2023.

On the contrary, subsidies decreased by €29.5m (49%) to €30.7m, from €60.2m in the second quarter of 2023.

(Source: CNA)