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The coronavirus shot the deficit to 1 billion and … let's go

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The coronavirus shot the deficit to 1 billion and ... let's go

The € 1 billion deficit in the Cypriot fiscal balance in 2020 was broken, with the effects of the coronavirus pandemic becoming more and more apparent in economic activity. Expenditure has skyrocketed and this is mainly due to support measures to address the effects of the coronavirus on employment, which amounted to € 546.5 million.

COVID and its effects resulted in a surplus of € 325.9 million (1.5% of GDP) for 2019 turning into a deficit of € 1,059.0 million (5% of GDP) in 2020.

Total expenditures, during the period January-December 2020, increased by € 1,029.5 million (+ 11.5%) and amounted to € 9,946.6 million, compared to € 8,917.1 million in the corresponding period of 2019. Social benefits increased by € 584.8 million (+ 19.3%) and amounted to € 3,619 million compared to € 3,034.2 million in 2019. Grants increased by € 508.1 million and amounted to € 578.2 million compared to € 70.1 million in 2019. The increase in this category is mainly attributed to business support measures due to the coronavirus pandemic. Staff remuneration increased by € 159.4 million (+ 5.8%) to € 2,892.1 million compared to € 2,732.7 million in 2019.

Revenues declined by 3.8% in 2020. During January-December 2020, they decreased by € 355.3 million (-3.8%) and were reduced to € 8,887.7 million compared to € 9,243.0 million in the corresponding period of 2019. Specifically, total taxes on production and imports decreased by € 300.0 million (-9%) and were limited to € 3,029.1 million compared to € 3,329 , 1 million in 2019, of which net VAT revenue (after deducting refunds) decreased by € 165.4 million (-8%) and was reduced to € 1,900.1 million compared to € 2,065, 5 million in 2019. Revenues from income tax and wealth decreased by € 31.7 million (-1.5%) and were reduced to € 2,124.6 million compared to € 2,156.3 million in 2019. Interest and dividends collected decreased by € 63.3 million (-29.7%) and were reduced to € 150.0 million compared to € 213.3 million in 2019. Current transfers decreased by € 9 , 9 million (-4.2%) and were limited to € 2 25.9 million compared to € 235.8 million in 2019. By contrast, social contributions increased by € 25.8 million (+ 1.1%) to € 2,403.9 million compared to € 2,378.1 million in 2019.

Source: www.philenews.com

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