Deficit in third quarter down to record low

The government has succeeded in recording the lowest third quarter deficit since data started being complied, according to the finance ministry.

The deficit for the third quarter of last year fell to €2.4m from €20.5m for the same period the year before. The deficit reduction is due to increased revenue, which was large enough to reduce the deficit despite an increase in expenditure.

Revenue increase by €66.7m or 7.5%, while expenditure went up by €48.5m (5.4%).

“The growth in total revenue was mainly fuelled by increases in revenues from market output as well as current taxes on income and wealth, the latter reflecting the dynamic performance of the labour market. Higher proceeds were also recorded in other revenue components including production and imports which is reflecting the persistent growth in domestic demand, and net social contributions,” read a statement from the ministry.

Furthermore, it added that the main increase in expenditure was due to intermediate consumption, with “other increases being recorded in the compensation of employees, current and capital transfers, and subsidies payable, as well as in social benefits and social transfers in kind.”

“This positive fiscal result for the third quarter of the year continues to confirm that we are indeed on track in reaching the record low annual deficit target of 0.7%, set for 2016,” said the finance minister