The Financial Report of the Republic of Cyprus for the financial year 2021 was submitted, on 29 March 2022, to the House of Representatives, within the deadline of three months from the end of the financial year specified by the Constitution of the Republic of Cyprus. The Financial Report was submitted to the Minister of Finance by the Comptroller General of the Republic on 17 March 2022 and through a proposal by the Minister of Finance, was approved by the Council of Ministers on 22 March 2022.
The Financial Report includes a presentation of the revenues and expenditures included in the 2021 State Budget, compared to the actual revenues and expenditures recognised in the same financial year, taking into account supplementary budgets and any transfers of appropriations.
In 2021, the Total revenues for 2021 from Operating and Investing Activities amounted to approximately €7.1 billion and the corresponding Expenditure amounted to €7.6 billion. The resulting deficit from Operating and Investment Activities amounted to €465 million (2020: deficit of €1,130 million).
After the inclusion of net Public Debt Servicing expenses, net outflows amounted to €904 million (2020: net outflows of €1,587 million). Taking into account the drawdowns and loan repayments made during 2021, net outflows amounted to €1,548 million (2020: Net inflows €2,083 million).
The decrease in the Deficit from Operating and Investing Activities compared to 2020 results mainly from increased revenues from direct taxation (2021: €2,659 million, 2020: €1,940 million) and increased other revenues (2021: €1,265 million, 2020: €907 million).
The main source of Government revenue is Taxation (€5,831 million), which accounts for 82.2% of revenue from Operating and Investing Activities. Similarly, the main categories of State expenditure are Transfers (€3,602 million) and Personnel Expenditure, Pensions and Gratuities (€2,798 million). Transfers relate mainly to grants and contributions by the State to various organisations (Public Law Organisations, Local Authorities, European Union, International Organisations, etc.) and individuals (social benefits, including the State's contribution to the General Health Plan and the grant to the State Health Services Organisation).
Also, in 2021, the Republic's Financing Activities include: New Loan Borrowings of €1.6 billion and Loan Repayments of €2.2 billion.
The amount of Public Debt excluding intra-governmental borrowing of €9.3 billion (2020: €9 billion) at approximately 31/12/2021 was €24 billion from €24.7 billion at 31/12/2020.
The full text of the Financial Report of the Republic of Cyprus, including the Report of the Comptroller General of the Republic, for the financial year 2021 is available on the website of the General Accounting Office of the Republic www.treasury.gov.cy in the Sectors / Accounting Services / Government Accounts section.
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