The fiscal deficit exhibited an upward trend for almost all the years of the Plan, the only exception being 1992 during which there was a great impetus in public revenue due to the implementation of V.A.T. and the tax reforms which took place, and also to the very high rate of economic growth. During 1993, the last year of the Plan, the fiscal deficit as a percentage of G.D.P. rose to 3% (2), a level which diverges from the Plan provision of 1,5%. Nevertheless, it is worth noting that the fiscal deficit on average was 73,5 million Cyprus Pounds during the 1989-93 period, a level which marginally surpasses the provision made by the Plan of 70,4 million Cyprus Pounds and which represents approximately 3% of the G.D.P.

Both total public revenue and total public expenditure increased, during the 1989-93 five year period, at higher average annual rates than those anticipated by the Plan, 13% and 12,5%, compared to 11,5% and 9,5% respectively.

The main reasons for the deviation from the targets, in terms of the public revenue, were the satisfactory yield of direct taxation, the higher receipts from Social Insurance Funds contributions, and also the greater non-tax receipts.

Source: www.kypros.org