Deficit nears €300 million

The government deficit rose by €58.6 million, to stand at €294.4 million, between January and May when compared to the same period last year.

The National Statistics Office said the increase was brought about by a €54.3 million rise in expenses, up from €1,051.4 million to €1,105.7 million, mainly because of a €20.9 million increase in social security benefits, a €18.9 million increase in the shipyards' voluntary retirement scheme and an €11.9 million rise in the cost of medicines and surgical material.

On the other hand, income fell by €4.3 million, from €815.6 million to €811.3 million, mainly because of a €26.6 million drop in Customs duties and excise and a €11.9 million decrease from VAT.

Government debt outstanding at the end of May was €3,774.7 million, an increase of €457.1 million over the same month last year.

Short- and long-term borrowing rose by €253.3 million and €209 million respectively while foreign borrowing fell by €14 million.

Euro coins issued by the Treasury, a currency liability, rose by €9.1 million to €34.4 million.