Filenews 2 July 2024 - by Angelos Angelodimou
The government's surplus for the five months of January and May 2024, exceeded half a billion euros, according to the Statistical Service.
This development shows, on the one hand, that the economy continues to generate increased tax revenues, but on the other hand, it intensifies the voices that argue that surpluses should be channelled to ease the financial burden on households and businesses. For the period January-May 2024, there is a general government surplus of €590.6m. (1.9% of GDP), compared to a surplus of €322.7m. (1.1% of GDP) for the period January-May 2023.
Finance Minister: Prudent policy
On behalf of the Ministry of Finance, it is noted that the amounts announced by the Statistics are the liquid assets that the Government will use as it deems appropriate. Already, it is noted, a supplementary budget has been submitted to Parliament for the continuation of support measures, such as the subsidy of the price of electricity, while a significant amount will be needed to provide support to farmers.
The Ministry of Finance emphasizes that the prudent economic policy followed will continue, as obligations constantly arise that need to be serviced and does not mean that because some surpluses have arisen, their distribution should begin, without taking into account future needs.
AKEL: They profit from inflation
Commenting, the Head of AKEL's Economic Research Office, Haris Polycarpou, told F that once again it seems that both the state, banks and energy companies are profiting from inflation.
Mr. Polycarpou focused on three points regarding the data of Statistics. He noted that the Government continues to win, despite what he described as its inadequate policy to reduce energy costs and fuel costs for consumers.
At a second stage, he added that following the surplus data, the Government has an obligation to submit a comprehensive plan aimed at alleviating the financial burden on households and businesses. In conclusion, Mr. Polycarpou noted that even now the Government is called upon to implement its own announcements, several of which have remained on paper, such as the interest rate subsidy.
Income
Total revenues during the period January-May 2024 increased by €700.8m. (+14.9%) and amounted to €5.394.5 million, compared to €4.693.7 million. in the corresponding period of 2023. Total taxes on production and imports increased by €147.5m. (+8.4%) and amounted to €1.899.1m, compared to €1.751.6m. in 2023, of which net VAT revenue (after deduction of refunds) increased by €106.0m. (+8.9%) and amounted to €1,297.1m. compared to €1.191,1 mil. in 2023.
Income and wealth tax revenues increased by €181.3m. (+17.2%) and amounted to €1.235.9m, compared to €1.054.6m. in 2023.
Expenditure
Total expenses during the period January-May 2024 increased by €432.8m. (+9.9%) and amounted to €4.803.9m, compared to €4.371.1m. in the corresponding period of 2023.
Specifically, staff remuneration (including imputed social contributions and pensions of civil servants) increased by €185.2m. (+13.8%) and amounted to €1.523.5 million, compared to €1.338.3 million. in 2023. Social benefits increased by €162.6m. (+9.3%) and amounted to €1,913.6m. compared to €1.751,0 mil. in 2023.
