Impressive Shift From Deficit to Surplus
The General Government registered a fiscal surplus of €0.6 million in the second quarter of 2025 (April–June), according to preliminary data from the Statistical Service. This turnaround is particularly notable when contrasted with the €68.7 million deficit recorded during the same period in 2024, underscoring a significant improvement in the nation’s fiscal health.
Revenue Growth Outpaces Last Year
Total revenues increased by €307.8 million (a 9.5% jump), climbing from €3,237 million to €3,544.8 million compared with the corresponding quarter of 2024. This robust performance was driven by several key components:
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- Social Contributions: Up by €81.7 million (7.5%), reaching €1,177.9 million.
- Income & Wealth Taxes: Increased by €100.6 million (19.8%), totaling €607.7 million.
- Production & Import Taxes: Rose by €45.2 million (3.8%), to €1,226.4 million, with the net VAT income up by €22.9 million (2.9%) arriving at €811.9 million.
- Property Income: Grew by €55.3 million, reaching €84.2 million.
- Capital Transfers: Recorded a substantial increase of €47.9 million (86.6%), aggregating €103.2 million.
On the downside, the government noted reductions in current transfers (a decline of €15.8 million or 10.9%) and in revenues derived from goods and services (a decrease of €7.1 million or 3.2%).
Expenditure Trends and Fiscal Discipline
Total expenditures climbed by €238.5 million (7.2%), reaching €3,544.2 million compared with €3,305.7 million in the corresponding quarter of 2024. Key expenditure areas include:
- Social Benefits: Increased by €72.9 million (5.2%), totaling €1,466.6 million.
- Personnel Costs: Rose by €60.5 million (6.7%), reaching €965 million.
- Property Income Payable: Up by €21.5 million (13.7%).
- Intermediate Consumption: Increased by €62.3 million (19.4%), arriving at €383.6 million.
- Capital Expenditures & Transfers: Saw an uplift of €43.2 million (16.7%), totaling €302.6 million.
Further savings were achieved through a €21.9 million (9.4%) reduction in other current expenditures, which fell to €211.1 million.
Conclusion: A Promising Fiscal Outlook
The marked shift from a substantial deficit to a surplus, alongside notable revenue growth and managed expenditure increases, signals robust fiscal recovery and prudent fiscal management. This evolution not only improves confidence in public finances but also sets a promising tone for future financial planning and economic stability.
