Revenue continued to outstrip expenditure in the first quarter, making it the third period in a row in which government finances registered a surplus.
The National Statistics Office figures released yesterday, which cover the extended government including its agencies and local councils, recorded a surplus of €44 million.
This is the figure used by Eurostat to determine the strength or otherwise of public finances.
It is the first time that a surplus was registered in the first quarter, traditionally a bad period for government finances. In the first three months of last year the general government recorded a deficit of €68 million in a year that went on to end with a record surplus of €101 million.
The consolidated fund, which refers only to central government finances, registered a deficit of €13 million, the lowest in many years. However, this transformed into a surplus when the general government accounts were taken into consideration.
The figures showed revenue topping €979 million, an increase of €137 million over the same period last year. This made up for a €25 million increase in expenditure (compared to Q1 last year), which stood at €935 million.
According to the NSO revenue was supported by higher proceeds from income tax and social security contributions, among others.
Outstanding government debt at the end of March increased by €73 million, reaching the €5.9 billion.
Government guaranteed debt for its entities, amounted to €1.4 billion at the end of March, an increase of €23 million when compared to the same period last year.
The government yesterday said the figures were a result of a thriving economy.
“Despite repeatedly cutting income tax, the government continued to rake in more revenue as a result of the strong increase in employment and improved profits for businesses.”
In a dig at the Opposition, the government said all this happened at a time when the Nationalist Party was warning of great uncertainty and businesses closing down.
The government noted that the relatively small increase in expenditure meant that as a proportion of GDP public spending dropped to 37 per cent from 39 per cent.
The government also noted that the strengthening of public finances meant that debt as a ratio of GDP dipped below the 60 per cent mark for the first time since 1998. In the first quarter this year, debt stood at 59 per cent.
“This administration zeroed the increase in the debt burden of the previous three Nationalist administrations,” the government said.