The Financial Report of the Republic of Cyprus for the financial year 2022 was submitted on 31 March 2023 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 23 March 2023 and, through a proposal by the Minister of Finance, was approved by the Council of Ministers on 29 March 2023.
The Financial Report includes a presentation of the revenues and expenditures that were included in the 2022 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 2022, Total revenues for 2022 from operating and investing activities amounted to €8 billion. The corresponding expenditure amounted to approximately €7.7 billion. The surplus from operating and investing activities amounted to €300 million (2021: deficit of €465 million).
After including net public debt servicing costs, net outflows amounted to €156 million (2021: net outflows of €904 million). Taking into account the drawdowns and loan repayments made during 2022, net outflows amounted to €898 million (2021: Net outflows €1,548 million).
The reversal of the deficit from operating and investing activities in 2021 to a surplus (2022: Net inflows €300 million, 2021: Net outflow €465 million), is mainly due to increased revenue from direct taxation (2022: €3,016 million, 2021: €2,659 million) and indirect taxation (2022: €3,579 million, 2021: €3,172 million).
The main source of government revenue is taxation (€6,594 million), which accounts for 82.4% of revenue from operating and investing activities. Similarly, the main categories of government expenditure are transfers (€3,376 million) and personnel costs, pensions and gratuities (€2,906 million). Transfers relate mainly to grants and contributions by the State to various organisations (public law bodies, local government authorities, the European Union, international organisations, etc.) and individuals (social benefits, including the State's contribution to the General Health Plan and its sponsorship of the State Health Services Agency).
Revenue from financing activities in the year 2022 amounted to €1.216 billion (2021: €1.591 billion) while expenditure amounted to €1.958 billion (2021: €2.235 billion)
Total borrowings at 31 December 2022, excluding intergovernmental borrowings of €9.743 million. (2021: €9,290 million), amounted to €22,730 million compared to €23,499 million at 31 December 2021, of which €21,487 million is external borrowings (2021: €21,455 million).
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 2022,
is available at website of the General Accounting Office of the Republic under Sectors/Accounting Services/Government Accounts.[/P](NΓ/EXP)
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