Less money spent on social benefits in the first three months did not stop the government deficit from growing.

Official figures yesterday confirmed that up to March the deficit had increased by €41 million when compared to the same period last year.

It stood at €85 million, the highest first quarter deficit since 2008, according to the National Statistics Office.

Social benefits, a high-expenditure category, were the only cost centre to register a drop. With more than €221 million spent on benefits, the figure was €8.4 million less than last year.

The government spent a total of €748 million, an increase of more than €73 million. Income in March stood at €662 million, an increase of €32 million.

The disparity between income and expenditure contributed to the higher deficit.

As a result, debt in the first three months increased by €432 million and stood at just under €5 billion in March.