The government's revenue dropped by €193.6 million to €949.9 million in the first quarter of this year, when compared to the same period last year. 

According to the National Statistics Offices, decreases in revenue were registered in almost all categories, primarily due to the impact of the COVID-19 pandemic.

The current taxes on income and wealth sector (€138.1 million) topped the list, followed by market output (€20.5 million), and net social contributions (€18.9 million).

Other decreases were registered in  capital transfers (€11.1 million), taxes on production and imports (€7.2 million) and  current transfers (€2.5 million)

On the other hand, there was an increase in property income (€4.6 million).

Increased expenditure, mostly related to COVID-19 benefits

Meanwhile total expenditure in the first quarter of 2020 amounted to €1,286.6 million - an increase of €99.5 million over the corresponding quarter in 2019.

Increases in expenditure were recorded in subsidies (€47.7 million), mostly in relation to the COVID-19 wage supplement amounting to €36.9 million, intermediate consumption (€40.8 million), social transfers in kind (€14.3 million), compensation of employees (€11.6 million) and current transfers (€8.6 million).

In contrast, when compared to the corresponding quarter of 2019, payable capital transfers payable and gross capital formation both registered a decrease of €13.9 million and €7.1 million respectively.

Other decreases were recorded in property income  (€2.6 million) and current taxes on income and wealth (€0.1 million).

In order to achieve compliance with the provisions of the European System of Accounts 2010, adjustments to the consolidated fund data were made.

In the first quarter of 2020, these adjustments brought about an increase of
€24.2 million to the fund deficit.