Gov’t posts € 12.2 mln budget deficit as spending outpaces revenue

The government posted a fiscal deficit of EUR 12.2 mln in the second quarter of the year, compared to a EUR 16.8 mln surplus in the same quarter of 2014 due to higher expenditure, according to the Statistical Service, Cystat.

The fiscal deficit in the first quarter stood at EUR 19 mln with the deficit for the first six months rising EUR 31.2 mln.

Based on the preliminary data on the General Government accounts for the April-June period, compiled in accordance to EU concepts and definitions (ESA 2010), total revenue amounted EUR 1,629.0 mln (1.4% increase as compared to the corresponding period of 2014), while total expenditure reached EUR 1,641.2 mln (3.3% increase).

In the same quarter, taxes on production and imports rose by 2.8% year on year to EUR 615.8 mln, of which VAT revenue rose 3.3% to EUR 354.1 mln. Taxes on income and wealth declined by 6.7% year on year to EUR 274.6 mln, while revenue from sales of goods and services increased by 27.9% as compared to the same period of the previous year, reaching EUR 129.8 mln.

With regard to expenditure, the public payroll (including imputed social contributions and pensions of civil servants) declined by 2.2% year on year to EUR 517.2 mln, whereas social transfers reached EUR 659.2 mln, an increase of 2.8%.

Intermediate consumption declined by 6.5% reaching EUR 145.6 mln, Cystat concluded.