Deficit up €11m in October

Government revenue in the first 10 months went up by €121 million but this was offset by a heftier increase in expenditure, which widened the deficit by €11 million.

In October, the deficit stood at €339 million, up from €328 million in the same period last year. The government is targeting a deficit of €297 million by year’s end.

Drops of €7 million in VAT receipts and €11 million in licences and fines were recouped by significant increases in the tax-take from Customs and excise, social security contributions and income tax.

Figures released by the National Statistics Office show that Customs and excise taxes raked in an additional €51 million, income tax an extra €50 million and national insurance contributions an additional €19 million.

Expenditure was particularly jacked up by an increase of €34 million in social security benefits, the energy support measures that amounted to €13.5 million and an increase in wages to the tune of €27 million.

Expenditure declines were registered in the one-off shipyards voluntary retirement schemes (€18 million) and medicines and surgical materials (€10 million).

Capital expenditure went up by €54 million, driven by a higher investment in infrastructure.

In October, government debt stood at just over €4 billion, an increase of €291 million over the same period last year.

*Projected deficit
Sources: NSO and Financial Estimates 2011