29.02.2024
According to a press release from the Treasury of the Republic of Cyprus, the implementation rate of development expenditures from the state budget amounted to 1% (€17.86 million ) during the first month of 2024, remaining at the average level over the past decade. However, revenue realization remained at the same level as in January last year at 8%, but showed a decline compared to expenses, which stood at 4% compared to 6% in January 2023.
The Treasury reported that by the end of January 2024, total revenues were €0.88 billion, equivalent to 8% of the government budget (€0.8 billion for 2023), while actual expenditure was €0.55 billion ( € 0.78 billion (6%) in 2023).
The execution of the state budget in terms of revenues remained at the level of the corresponding period last year (8% in 2023 and 8% in 2024), but showed a decrease compared to expenditures (6% in 2023 and 4% in 2024) .
The Treasury noted that the decrease in expenditure realization was due to a decrease in the outflow of funds for loan repayments and interest payments (0.28 billion euros for 2023 and 0.05 billion euros for 2024).
The implementation of capital expenditures in January 2024 reached 5.9 billion euros. This was primarily due to investments in road infrastructure amounting to €3.4 billion and spending on the construction, expansion and improvement of school buildings totaling €1.9 billion.
In addition, the realization of co-financed and other financial costs in January 2024 amounted to 3.2 billion euros. This was mainly due to the Tuition and Child Nutrition Subsidy Scheme worth €1.6 billion , SME Competitiveness Grants worth €0.3 billion, the Home Savings Upgrading Scheme worth €0.2 billion euros and stimulus programs for the unemployed in the amount of 0.2 billion euros.
The implementation of grants, contributions and subsidies until the end of January 2024 reached 7 billion euros. This was primarily due to grants to voluntary organizations amounting to €4.6 billion and government contributions to the European Peace Fund totaling €1.1 billion, the European Investment Bank totaling €0.6 billion and the European Development Fund totaling €0. 1 billion euros.
The implementation of social payments by the end of January 2024 amounted to 1.1 billion euros. This was mainly due to grants to voluntary organizations totaling €0.7 billion and spending on cultural events amounting to €0.4 billion.
January 2024 saw notable changes in income and expenses compared to the previous year. According to the press release, indirect taxes decreased by EUR 0.01 billion (5%), mainly due to a decrease in VAT revenues of EUR 0.02 billion (2024: EUR 0.24 billion, 2023: EUR 0.26 billion euros). On the other hand, direct taxes increased by €0.12 billion (28%) compared to the previous year, mainly due to income tax on both legal entities and individuals (2024: €0.51 billion, 2023 city: 0.40 billion euros). However, until the end of January, there were no loan repossessions in either 2024 or 2023.
Regarding the execution of the state budget in relation to expenditures, expenses related to wages, pensions and benefits increased by 9% (0.02 billion euros), increasing from 0.23 billion euros in 2023 to 0.25 billion euros in 2024. Interest amounted to €0.05 billion (2023: €0.28 billion), of which €0.04 billion (2023: €0.05 billion) was allocated to interest and fees on the loan and €0.01 billion (2023: 0.23 billion euros) – for internal loan payments.
In addition, spending on social benefits in January 2024 amounted to €0.08 billion , unchanged compared to the previous year (2023: €0.08 billion).
