The deficit fell by €120 million in the first five months of 2015 due to higher revenues, figures out yesterday show.

According to the National Statistics Office, the deficit stood at €119 million in May as revenue increased by €186 million despite the income tax cut that began on January 1. Income outweighed the rise in expenditure of €66 million.

Recurrent revenue was recorded at €1.3 billion, up from €1.2 billion last year.

Grants added an extra €73 million to State coffers while Customs and excise duties grew by €36 million. The government also saw increases in income tax (€26 million) and VAT (€18 million).

Revenue increased by €186 million despite the income tax cut of January 1

The increase in expenditure was mainly driven by higher outlays on recurrent costs (€33 million), of which the highest increase (€17 million) consisted of public sector wages. Other increases in expenditure were offset by lower outlays on social security benefits (€6 million).

Capital expenditure was recorded at €179 million, up €29 million from last year.

Increases included additional outlays on the acquisition of property for public purposes (€8 million).

At the end of May, central government debt stood at €5.3 billion, an increase of €61.4 million over the corresponding period last year.