General government surplus higher by EUR 134 million
General government generated an above average surplus in the third quarter of this year; it amounted to EUR 193 million. Compared to the same quarter of 2018 the general government surplus was higher by EUR 134 million. Total revenue growth was higher than total expenditure growth for 2.6 percentage points and that is first time after fourth quarter of 2018.
Total revenue growth was high – 7.4%
Total revenue of general government amounted to EUR 5,430 million. Compared to the third quarter of 2018 it was higher by 7.4%, again mainly due to higher growth in revenue from social contributions.
The upward trend of revenue from social contributions continued as revenues from social contributions increased by 7.2% (EUR 128 million) compared to third quarter of 2018. Tax revenue increased by 5.8% (EUR 148 million) out of which current taxes on income and wealth had important impact on total revenue growth of general government, they increased by 9.7% (EUR 85 million). Taxes on production and import were higher by 3.5% (EUR 59 million).
Total expenditure growth at 4.8%
Total expenditure of general government amounted to EUR 5,237 million. Compared to the same quarter of previous year, total expenditure growth in third quarter of 2019 was 4.8%. First time after two quarters it was also lower than total revenue growth.
Compared to third quarter of 2018 the highest increase in expenditure were social benefits other than social transfers in kind and social transfers in kind which increased by 5% (EUR 104 million), followed by compensation of employees which increased by 7.5% (EUR 94 million). The expenditure on gross fixed capital formation increased by 4.8% (EUR 20.1 million). The downward trend of interest expenditure continued; this expenditure was 15% lower (EUR 34 million).
Consolidated general government gross debt at the end of the third quarter of 2019 at 68.1% of GDP
Compared to the end of the second quarter of 2019, consolidated general government gross debt increased by EUR 586 million and at the end of the third quarter of 2019 amounted to EUR 32,390 million or 68.1% of GDP. Debt in short term loans increased the most.
Government debt at the central level was estimated at EUR 31,817 million (66.9% of GDP) and at the local level at EUR 786 million (1.7% of GDP). Compared to the end of second quarter of 2019 social security fund debt decreased by EUR 0.1 million and remained minimal (EUR 0.4 million).