In April, the state budget recorded a surplus, which was the result of stronger revenue growth due to the settlement of the previous year’s corporate income tax liabilities and the partial recording of new payments of RRF funds.
In the first four months of the year, the deficit totalled approximately EUR 420 million, while the expenditure growth remained high at more than 10%. It was mostly due to the higher costs of labour which are expected to increase further in the coming months. The strong growth was also mainly due to higher social transfers resulting from the statutory indexation for inflation, discretionary measures and higher investment. In addition to defence expenditure, investment in health and education infrastructure is also increasing this year.