After the first two months of this year, the state budget deficit shrank by half compared with the same period a year ago, according to the Finance Ministry which reported the deficit at €344.1 million at the end of February, down 55.9 percent year-on-year, the SITA newswire reported.
Total revenues increased by 20.3 percent to €1.758 billion and expenditures recorded a drop of 6.2 percent to €2.102 billion. The y-o-y increase in revenues of the state was supported primarily by growth of tax revenues and a considerable increase in revenues from the EU. Tax revenues for the state amounted to €1.242 billion for the first two months of this year, up 9.8 percent y-o-y. VAT collection grew 11.5 percent y-o-y to €707.8 million while excise taxes increased by 8.4 percent to almost €339 million. Personal income taxes, which primarily go to municipalities, were down €41.3 million at the end of February in comparison to the previous year.
Expenditures in the first two months shrank 6 percent y-o-y to €1.983 billion. Capital expenditures dropped 10.5 percent to €119.5 million, SITA wrote. According to the state budget law adopted by parliament, the budget deficit is expected to be €3.81 billion for 2011. The deficit of the general government as a whole, considering all public institutions, not only the state, should be 4.9 percent of GDP.
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1. Mar 2011 at 14:00