Deficit down in first quarter

The deficit in the first three months of this year was €49.8 million, down from €106 million in the same period last year, according to quarterly accounts for the government released by the National Statistics Office yesterday.

The government's revenue amounted to €547.8 million in the first quarter, an increase of €5.4 million compared to the same quarter in 2008. Meanwhile, tax revenue from production and imports rose by €31.3 million and capital transfers went up by €7.3 million.

On the other hand, declines were reported in taxes on production and imports (- €16.4 million) and market output (- €13.7 million).

At €597.6 million, government expenditure fell by €50.9 million when compared to the same quarter last year. This was brought about by decreases in gross capital formation, subsidies, intermediate consumption and capital transfers.

In contrast, expenditure on wages and social benefits grew by €21 million and €9.3 million respectively.

When compared to the end of March last year, total outstanding government debt went up by €325.7 million and amounted to €3.7 billion.