General government deficit grew by EUR 1.7 billion in April to June 2024 from the previous year

Central government's net borrowing increased by EUR 0.2 billion from the quarter one year ago

Central government total revenue at current prices grew by EUR 0.4 billion (1.9%) and total expenditure increased by EUR 0.7 billion (2.8%) from the quarter twelve months back. Because expenditure went up more than revenue, central government's net borrowing at current prices increased by EUR 0.2 billion.

The revenue items that grew most in monetary terms were output at basic prices, income taxes and taxes on products. The expenditure items that increased most were current transfers to local government, gross fixed capital formation and consumption expenditure. The difference between revenue and expenditure, that is, central government net borrowing, was EUR 2.0 billion in the second quarter of 2024.

Local government net lending grew from the quarter one year ago

Local government’s total revenue grew by EUR 0.6 billion (3.9%) and total expenditure by EUR 0.4 billion (2.4%) from the quarter twelve months back. In monetary terms, taxes received and current transfers received increased most of total revenue. Wages and salaries and investments (gross fixed capital formation) grew most in monetary terms of expenditure items. The surplus (net lending) of local government was EUR 294 million in the second quarter.

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).

Level revisions have been made to the time series of national accounts. Special attention should be paid to the comparability of taxes on production received and other current taxes received by local government. The methodological change applied starting from 2010 causes a break in the time series between 2009 and 2010. In addition, the levels of local government output and intermediate consumption have been revised starting from 2015. More information about revisions can be found in the September release of the annual national accounts.

Social security funds sector in deficit

Employment pension schemes’ total revenue decreased by EUR 0.1 billion (-0.7%) and total expenditure increased 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 item 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 to pensions contributions. The financial position of employment pension schemes weakened by EUR 0.7 billion from one year ago, being EUR 0.3 billion in surplus in the second quarter of 2024.

Other social security funds’ total revenue decreased by EUR 0.64 billion (-11.8%) and total expenditure grew by EUR 0.36 billion (7.2%) from the quarter twelve months back. The significant drop in revenue is caused by the sickness and unemployment insurance contribution percentages that were lowered at the turn of the year. The increase in expenditure is largely explained by the increase in social allowances other than social transfers in kind. The deficit (net borrowing) of other social security funds was EUR 0.5 billion.