Breaking news

Government Fiscal Performance Q3 2025: Surplus Decline Amid Revenue Gains and Elevated Spending

by THEFUTURE.TEAM

January 26, 2026

Fiscal Surplus Contraction in Q3 2025

Preliminary fiscal data for the period July–September 2025 indicate that the general government recorded a surplus of €653.6 million, a decline from the €871.0 million surplus achieved in the corresponding quarter of 2024. Detailed analysis from the Pleonasma series and related commentary on fiscal outcomes underscores the evolving economic landscape.

Revenue Enhancements

Total revenues for Q3 2025 increased by €104.2 million (+2.6%), reaching €4,099.0 million from €3,994.8 million in Q3 2024. Social contributions demonstrated robust growth, rising by €62.5 million (+5.7%) to €1,151.2 million from €1,088.7 million during the same period last year.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Revenue gains were also observed in personal income and wealth taxation, which grew by €10.9 million (+0.8%) to €1,299.3 million compared to €1,288.4 million. Taxes on production and imports increased by €7.1 million (+0.6%), totaling €1,264.3 million; notably, net VAT revenue (after reimbursements) saw an encouraging rise of €40.2 million (+4.8%) to €886.4 million.

Other revenue segments, including receivables from property income, capital transfers, and goods and services provided, also registered modest improvements. Property income receivables climbed by €3.0 million (+13.5%), while capital transfers surged by €6.0 million to €10.8 million. Revenues from goods and services increased by €15.1 million (+6.1%) to €260.9 million. Conversely, current transfers experienced a slight contraction, decreasing by €0.4 million (-0.5%) to €87.2 million.

Escalating Expenditures

Total expenditures during the period advanced by €321.5 million (+10.3%), reaching €3,445.3 million versus €3,123.8 million in Q3 2024. Social benefits were the primary driver, with an increase of €97.8 million (+7.9%) to €1,334.6 million compared to €1,236.8 million previously.

Employee compensation—which encompasses statutory social contributions and public employee pensions—rose by €50.5 million (+5.6%), culminating at €955.6 million, up from €905.1 million. Intermediate consumption saw a moderate uptick of €4.5 million (+1.2%) to €382.0 million.

Notably, the capital account expenditures surged by €223.7 million (+84.2%) to €489.3 million, which includes €321.0 million in capital investments and €168.3 million in capital transfers, compared with €265.6 million the previous year. In contrast, payable property income contracted by €26.1 million (-25.7%) to €75.3 million, and other current expenditures fell by €16.1 million (-8.6%) to €171.2 million. Furthermore, subsidies experienced a marked reduction, dropping by €12.6 million (-25.3%) to €37.3 million from €49.9 million.

Implications for Policy and Economic Stability

The evolving fiscal indicators highlight the complex balance between revenue enhancements and growing expenditures amid changing economic conditions. The data, meticulously compiled and reported by the national statistical authority, point to significant challenges and opportunities for policymakers tasked with sustaining long-term fiscal stability.

Outlook

The detailed disaggregation of revenue and expenditure items is critical for informed decision-making in the public sector. As governments navigate the interplay of rising social contributions, evolving tax bases, and shifting capital investments, the Q3 2025 fiscal performance offers pivotal insights into the broader economic trajectory and the future direction of public finance management.

The Future Forbes Realty Global Properties

Innovative Breakthrough: Converting CO2 Into Synthetic Fuel

Revolutionizing Fuel Production From Pollutants

Scientists at the Korea Institute of Chemical Technology have developed a technology that converts carbon dioxide directly into synthetic liquid fuels, offering a new approach to fuel production and carbon emissions management. The process is designed to transform industrial CO2 emissions into hydrocarbon fuels, including gasoline and kerosene.

Simplifying A Complex Process

Conventional methods for converting CO2 into fuel typically require multiple stages and extremely high temperatures, often exceeding 800°C, to first convert carbon dioxide into carbon monoxide. The new catalyst system allows the reaction to take place inside a single reactor at temperatures between 270°C and 330°C under lower pressure conditions. According to the researchers, the simplified process could reduce production costs and improve the feasibility of industrial-scale deployment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Meeting Industry Needs Amid A Rapid Transformation

The technology is being developed as industries continue searching for lower-emission fuel production methods amid energy market pressures and tighter environmental targets. Researchers said the process could allow industrial carbon emissions to be reused in the production of synthetic fuels rather than being released directly into the atmosphere.

Scaling Up And Future Implications

The current pilot system produces approximately 50 kilograms of fuel per day, equivalent to roughly three 20-liter drums. Researchers noted that comparable systems produced around 5 kilograms per day only two years ago and at significantly higher costs. The process currently operates with reported efficiencies of approximately 50%, while gas recycling systems are also being used to improve energy recovery.

The development team said the progress increases the potential for larger-scale production in the future.

Transforming Carbon Emission Landscapes

Industry leaders and major energy companies, including OGS Engineering & Construction and Hanwha TotalEnergies, are already exploring industrial applications of this technology. Their goal is to develop installations capable of producing more than 100,000 tonnes of fuel annually. Furthermore, by integrating green hydrogen produced from renewable energy sources, this process can potentially achieve near carbon neutrality, as the CO2 emitted during combustion nearly equals the CO2 consumed in production.

The Road Ahead

This innovative process not only signals a pivotal moment for sustainable fuel production but also underscores the transformative potential of modern chemical engineering. As the energy landscape continues to evolve, the integration of such groundbreaking technologies stands to redefine both environmental stewardship and industrial efficiency on a global scale.