slow spending — The government’s slow spending this year’s budget is evident as actual expenditures and revenues have fallen below the average of the past decade. According to a briefing from the state treasury on Monday, the implementation of the 2025 state budget stood at 65 per cent for revenue and only 59 per cent for expenditures by the end of October.
This performance indicates that actual revenues reached €7.63 billion, while expenditures totalled €7.68 billion up to October. When comparing these figures to the same period in 2024, the treasury noted a significant decline in actual revenue, primarily attributed to reduced loan drawdowns. However, this decline was somewhat mitigated by a modest rise in tax collections, with indirect taxes increasing by €160 million and direct taxes by €130 million.
The percentage of actual expenditures also decreased relative to the previous year, largely due to lower loan and interest repayments. Nevertheless, spending on payroll for public-sector employees, including salaries and pensions, showed a slight increase compared to last year.
Social benefits expenditure reached €1.51 billion by the end of October, while transfers and grants accounted for €1.46 billion. Capital expenditures, which encompass spending on infrastructure projects such as roadworks, improvements to government buildings, and investments in mechanical equipment, totalled €285.1 million during the same period.
Historically, the average rate of expenditure implementation in the first ten months of the year has been around 65 per cent, making this year’s figures particularly noteworthy. The treasury’s data underscores the challenges faced in adhering to the planned budget, with potential implications for fiscal policy and economic growth as the year progresses.
