Official budget deficit at 6.3% of GDP in 2011

The official budget deficit (accruals basis) in 2011 has been officially recorded at EUR 1,118.9 mln or 6.3% of GDP, according to the latest figures from the Statistical Service, compared with 5.3% in 2010.
The deficit on a cash basis was reported earlier this year at 6% of GDP.
Total public-sector expenditure increased by 4.5% and total revenue by 2.3%.
In the fourth quarter alone total revenue rose by 4.2% over the year earlier to EUR 2,060.9 mln while total expenditure increased by 11% to EUR 2,639.8 mln.
The fourth-quarter deficit expanded to EUR 578.9 mln compared with EUR 400.5 mln in the fourth quarter of 2010.
Taxes on production and imports fell by 5.9% to EUR 690.6 mln, of which VAT fell by 4.7% to EUR 403.6 mln .
Taxes on income and wealth stabilised at EUR 594.3 mln and revenue from sales of goods and services dropped by 11.7%.
On the expenditure side, compensation of employees rose by 2.8% to EUR 855 mln whiel social transfers increase by 22.3% to EUR 805.9 mln.
Current transfers soared to EUR 244.7 mln compared with EUR 59.3 mln in the corresponding period of the previous year.
Capital formation fell by 22.6% and intermediate consumption by 137%.