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Public finances registered a deficit of 9.5 billion euros at the end of August according to the latest statements from the Treasury.
This compares with a deficit of 625 million euros recorded at the same point last year.
The deterioration of 8.8 billion euros is largely due to increased public spending.
The increase in spending is concentrated in the departments of Health and Labor Affairs and Social Protection.
Compared to last year, there has been an increase in general public spending of 28% or 9.46 billion euros.
But tax revenue continues to be better than expected.
Tax revenue in August was only marginally reduced by € 11 million or 0.4% compared to August last year.
Cumulatively in the year to the end of August, the total amount of taxes collected was 2.3% or 802 million euros less than in the same period of 2019.
This is the result of a larger-than-expected increase in corporate tax recorded in the early summer and strong tax collection before the pandemic hit.
In a statement, the Department of Finance also notes that “the declines observed in most tax chiefs” are “less severe than anticipated.”
Income tax has also held up better than expected, standing at just € 194 million or 1.4% less than last year for the period to the end of August.
But VAT revenue is still falling 21.3% compared to the same period last year.
Public finances also benefited from a € 2 billion payment from NAMA to the Treasury.
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