Illustrative stock photo (source: Sme)
A significant increase in the collection of taxes and payroll levies has helped public administration to reduce its deficit to an historically low level.
The income from taxes and payroll levies was €745.6 million higher than expected, which positively influenced the deficit of the public administration budget by 0.92 percent of the gross domestic product. Tax incomes were €358.5 million higher and payroll tax incomes €386.9 million higher, the SITA newswire reported.
The deficit of the public administration budget amounted to 1.68 percent of GDP last year, while originally it was predicted to stand at 1.93 percent.
In addition, the budget deficit was positively impacted by cash expenditures that were €535.6 million higher than expected.
Management of municipal administration also improved in fiscal terms by €240.5 million. This was mostly the result of the management of villages whose expenditures increased by €238.4 million. On the other hand, the finances of the self-governing region were €19 million worse off, SITA reported.
As for negative impacts on public finances, other selected public administration expenditures amounted to €649.9 million in total.
