Deficit down in first quarter

The deficit in the first three months dropped by almost €35 million when compared to the same period last year according to the National Statistics Office.

Figures released yesterday show that the shortfall between recurrent revenue and total expenditure amounted to €188.2 million in the first quarter.

Recurrent revenue went up by €37.7 million to reach €489.3 million. The upward movement was underpinned by higher takings from VAT (€21 million), customs and excise (€12.7 million) and social security contributions (€11.4 million).

However, proceeds from income tax bucked the trend, registering a drop of €25.1 million.

Total expenditure went up by €3.3 million, to reach €677.4 million when compared to the first three months of last year. The marginal increase – less than one per cent – resulted from higher outlays on interest payments and capital expenditure, which were outweighed by a fall in recurrent expenditure.

The decline of €11.2 million in recurrent expenditure was driven by lower social security benefits and contributions to government entities.

These were partially outweighed by higher allocation to local councils (€7.5 million), additional expenditure on medicines and surgical materials (€4.3 million) and street lighting (€4 million).

Capital expenditure went up by €6.2 million. This was triggered by increases of €4.4 million under the external borders fund and €4 million on PC leasing. Road construction expenditure dropped by €1.2 million.

The interest component of the public debt servicing costs for the period under review rose by €8.3 million.

At the end of March public debt went up by €329.9 million to reach €4.3 billion.