The Cypriot government has confirmed that the general government accounts showed the budget was in surplus during the first quarter of 2005.
According to the data, revenues of CYP828.8 million (EUR1.4 billion) and expenditure of CYP715 million resulted in a budget surplus of CYP113.8 million for the first three months of 2005.
According to the Ministry of Finance, increased receipts from value added tax, income tax, wealth tax, and capital transfer tax have contributed to the rise in overall revenues. The recent tax amnesty, which ended in January 2005, also helped to put black ink in the government's books, bringing in an additional CYP119 million in revenues.
Since acceding to the European Union in May last year, Cyprus has been compelled to reduce its overall budget deficit, which stood at 4.2% of gross domestic product in 2004. The government has pledged to reduce this to below 3% in 2005.
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