The state budget recorded a deficit of approximately -EUR 280 million in the first four months of the year. In the same period last year, it recorded a surplus of around EUR 170 million. The gap between revenue (1.7%) and expenditure growth (11.8%) remains high. Revenue growth is slowing across all major components.
The expenditure growth is driven by higher subsidy and interest payments, as well as certain discretionary factors, and remains high despite a decline in investment. In the coming months, expenditure growth could increase further, primarily due to the effects of the public sector wage agreement.