General government deficit grew by EUR 1.3 billion in January to March 2024 from the previous year

Central government's net borrowing decreased by EUR 0.3 billion from the quarter one year ago

Central government total revenue at current prices grew by EUR 0.9 billion (4.5%) and total expenditure increased by EUR 0.6 billion (2.6%) from the quarter twelve months back. Because revenue grew more than expenditure, central government's net borrowing at current prices decreased by EUR 0.3 billion. The revenue items that grew most in monetary terms were income taxes and taxes on products received by central government. The expenditure items that grew most were consumption expenditure and current transfers to social security funds. The difference between revenue and expenditure, that is, central government net borrowing, was EUR 4.5 billion in the first quarter of 2024.

The non-recurring compensation of EUR 0.5 billion paid to wellbeing services counties in January 2024, adjusting the funding for 2023, was recorded as revenue for wellbeing services counties and as expenditure for central government for the last quarter of 2023.

Financial position of local government weakened from the quarter one year ago

Local government's total expenditure grew by EUR 0.6 billion (4.0%) from the respective quarter of the year before. Total revenue was on level with the previous year. In monetary terms, compensation of employees and social transfers in kind (purchased market output) grew most among the expenditure items. Local government’s surplus was EUR 2.1 billion in the first quarter of the year.

From the beginning of 2023, the local government sector is divided into new sub-sectors: local government excl. wellbeing services county administration (S13131) and wellbeing services county administration (S13132). The change causes a break in the time series of the figures of local government. The data of the new sub-sectors of local government will become revised as new source data improve and annual national accounts data for the statistical reference year 2023 are revised.

Surplus of social security funds dissolved

Employment pension schemes’ total revenue grew by EUR 0.1 billion (1.1%) and total expenditure by EUR 0.6 billion (7.2%) from the quarter twelve months back. The revenue item that grew most in monetary terms was property income. The expenditure items that grew most in monetary terms was paid social benefits other than social transfers in kind, the rapid growth of which is due to substantial index increases of pensions. The surplus (net lending) of employment pension schemes was EUR 0.1 billion in the first quarter.

Other social security funds’ total revenue decreased by EUR 0.22 billion (-3.8%) and total expenditure grew by EUR 0.24 billion (4.6%) from the quarter twelve months back. The revenue item that decreased most was social security contributions paid by households. The increase in expenditure is largely explained by the increase in social allowances other than social transfers in kind. The surplus (net lending) of other social security funds was EUR 0.2 billion.